State Farm Consolidating Calif. Facilities

July 17, 2002

State Farm’s California management has given the go-ahead for a statewide consolidation of claim and business administration offices, including the closing of the major operation centers in Westlake Village and Costa Mesa.

In addition, the company plans to go from 66 claims locations to 20 over the course of the next 18 to 24 months. Company officials said the restructuring would not immediately result in the loss of jobs. Employees, however, will be offered relocation, reassignment and severance options.

Dale Nowell, California Operations vice president, remarked that the office closings were part of the company’s ongoing efforts to modernize and streamline the company’s internal operations to better serve State Farm customers.

“Our significant investment in technology over the last decade allows us to bring better and more efficient service to our customers while at the same time reducing our operational expenses,” the Woodland Hills-based executive commented. The new California structure is estimated to save the company approximately $69 million annually.

Nowell said company-owned offices scheduled for closing would be sold.

Of the approximately 1,200 employees directly affected by the closings, Nowell said the company was hopeful many would stay with State Farm in either another capacity or in their current position at another office location.

There are 702 employees at Westlake Village and 525 in Costa Mesa.

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