by Scott Long

State Farm is cutting at least 500 jobs in the Mid-Atlantic region over the next two to two and a half years by consolidating operations and closing claims offices, reports the Associated Press.

Between 400 and 500 jobs at State Farm's Frederick, Md., operations center will be eliminated. About half of those jobs will be moved to State Farm's Charlottesville, Va., office.

State Farm also plans to close half of its 50 field claims offices in Maryland, Virginia, Delaware, the District of Columbia, North Carolina and West Virginia, which will eliminate another 400 to 500 jobs.

A State Farm spokesperson told Hammer and Dolly that enhanced technology, such as being able to send digital photos, is one factor behind the reductions in the workforce.

"We're looking at the long-term benefits for our customers," said the State Farm spokesperson. "It's a cost savings that makes sure we're as efficient as possible."

\Over the past eight months, State Farm additionally announced plans to close operations offices in Marshall, Mich., and Monroe, La.

In February of this year, State Farm reported that higher premiums and lower claims helped it achieve a $2.8 billion profit last year, following two years of multi-billion-dollar losses.
State Farm also announced in February that cost cuts contributed to a 3½-percent increase in accounts from two and a half years earlier, using 10 percent fewer employees.

(© 2004 Hammer and Dolly magazine. Reprinted with permission.)