Maryland’s Job Loss Could be Virginia’s Gain as State Farm Insurance Reorganizes in Mid-Atlantic States

July 28, 2004

State Farm Insurance confirmed it is moving to phase-out its Frederick, Md. claims and operations office as part of a reorganization that could eliminate from 400 to 500 jobs there and an equal number in field offices in the mid-Atlantic region over the next two and one-half years.

According to State Farm spokesperson Phil Supple, about 200 to 300 of the Maryland operations center jobs could wind up in Charlottesville, Va., where underwriting for the insurer’s mid-Atlantic region will be consolidated.

The Bloomington, Ill.-based company also said it will shutter a number of field claim offices in Maryland, Virginia, Delaware, the District of Columbia, North Carolina and West Virginia, cutting another 400 to 500 jobs.

State Farm, the nation’s largest insurer, has been reviewing its operations around the country and taking steps to improve service and efficiencies, Supple said.

The Maryland employee reductions do not reflect any cutback in commitment to the mid-Atlantic region or on its agency force, Supple said. He also said some of those laid-off could be rehired in other regions or departments of the company, which has 72,000 employees across the country.

“These decisions, while difficult, are the best business decisions for balancing the long-term benefits of our customers, company, employees and agents,” Randy Garrett, State Farm’s vice president of operations, said in a statement.

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