BLOOMINGTON — State Farm plans to let some local employees go, but will continue to have the same number of workers in Bloomington-Normal while restructuring its information technology department over the next year.
"Job reductions will begin by offering a severance payment to certain employees who voluntarily elect to leave the company. We are uncertain how many employees will take this offer," the company said in a statement released Tuesday afternoon.
The Bloomington-based insurer is not releasing how many workers are expected to leave overall or what the severance packages will entail, said a spokesperson.
"You are likely hearing many numbers or percentages, but it’s important to understand these numbers include employees located in various locations ... and/or percentages based on areas within our IT function," according to the statement.
State Farm has regional hubs in Atlanta, Dallas and Phoenix.
The restructuring is intended to "better serve customers’ increasing expectations for simpler, faster, technology-driven ways to do business with the company," including "more sophisticated online and mobile solutions to customers in our fast-paced, hyper-connected world," according to the company.
No specific technology initiatives were listed in the release.
"State Farm anticipates changes in the marketplace and continually evaluates all its operations," said the statement. "Because technology continues to change our industry and the needs of our customers, it remains a key factor in our business."
Last fall, State Farm CEO Michael Tipsord said the company would continue to have more employees in Bloomington-Normal than any other location, but the local employee count was not expected to increase.
"The overall State Farm local workforce will continue to fluctuate around 15,000 employees as hundreds of employees move in and out of the company’s Bloomington facilities every year," according to Tuesday's statement. "Currently, State Farm has nearly 70,000 employees across the U.S."
Investment and other income of $4.4 billion — an increase of $400 million over the previous year — helped offset the underwriting loss to reduce the overall operating loss.
The State Farm group ended the year with a combined net worth of $87.6 billion — up from $82.7 billion at the end of 2015.
Bloomington's State Farm facilities include corporate headquarters, the Corporate South campuses, company research and training facilities, a centralized shipping and services center and the original State Farm headquarters building in downtown. State Farm's Illinois Operations Center also is located in Bloomington, near the Corporate South campus.