BLOOMINGTON — About 890 non-management analyst positions are being cut in Bloomington as part of State Farm's ongoing realignment of its information technology divisions. The company also plans to add at least 300 jobs in its local claims division.

About 380 of the IT positions are being moved to State Farm's three larger hubs: 30 to Atlanta, 70 to Dallas and 280 to Phoenix. The insurer said its Bloomington-based workforce will remain at around 15,000 employees. The company has nearly 70,000 employees across the U.S., including 23,000 employed at the hubs.

Some of the employees affected will have opportunities to move to other positions, apply for other positions within the company, or relocate to other State Farm locations. Some employees also could choose to retire or pursue opportunities outside of State Farm; others may be eligible for severance benefits, said State Farm.

Last fall, the insurer began the process of realigning its IT areas from three departments into one, which the company now calls enterprise technology (ET).

"As this process continues, employees recently learned additional information about next steps, including some staffing reductions," the company said in a statement released after a live meeting online Tuesday morning with ET employees at the company's locations throughout the U.S.

"You are likely hearing many numbers or percentages, but it’s important to understand these numbers include employees located in various locations across the country and/or percentages based on areas within our ET function," said State Farm.

"We previously announced approximately 250 claims positions will move to Bloomington from Tacoma," said the company. "We also anticipate at least 300 additional claims positions in Bloomington. We believe enterprise technology employees may be competitive for some of these positions."

The IT realignment "will better serve customers’ increasing expectation for simpler, faster, technology-driven ways to do business with our company,” said the company.

State Farm's enterprise technology operations will continue to be located in the three hubs and Bloomington, with the majority of operations remaining in Bloomington, said the company.

"What we can tell you is by the end of this realignment we expect to see an overall reduction of approximately 500 non-management, professional-level IT jobs across State Farm," said the statement.

"The overall State Farm Bloomington workforce will remain at around 15,000 employees, as hundreds of employees move in and out of the company’s Bloomington facilities every year," said the company. "This means that while we are reducing in the enterprise technology department, other departments will move people to Bloomington.

"Just like any business, we must continually look for ways to evolve towards the future and serve our customers in a more efficient way," said the company. "Reviewing and adjusting our processes, departments and facilities helps position the company and its employees for the future and remain strong for State Farm policyholders."

The company was not releasing any additional information beyond what it provided in the statement, said State Farm spokeswoman Missy Dundov.

The company declined to release the number of IT employees it has and the amount of savings anticipated with the department's realignment.

The State Farm announcement follows the release last week of the company's year-end financial report.

State Farm property-casualty companies reported a pretax operating loss of $1.7 billion for 2017, but the company's net worth still increased.

A combined $6.5 billion underwriting loss on earned premiums of $63.9 billion in 2017 was the major contributor to the 2017 operating loss. In comparison, the underwriting loss in 2016 was $5.5 billion on earned premiums of $61.7 billion.

The company said its underwriting loss in 2017 was driven by significant castastrophe losses from major hurricanes, winter storms and wildfires.

Investment and other income of $4.8 billion — an increase of $400 million over the previous year — helped offset the underwriting loss to reduce the overall operating loss.

The net worth for the State Farm group ended the year at $97 billion, up from $87.6 billion at the end of 2016, according to figures the Bloomington-based insurer released Thursday.

In addition to the information technology restructuring, State Farm also is adjusting its "real estate footprint" across the country, including pulling out of the downtown Bloomington building that once served as the company's headquarters. The company has not said whether that building will be sold.

Since the company announced last year it was closing 11 facilities across the U.S. over the next four years, two call centers in Tacoma, Wash., have been added to the closure list.

Follow Maria Nagle on Twitter: @pg_nagle

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