State Farm Review Could Lead to Layoffs [The Ledger, Lakeland, Fla.]

Oct. 07--WINTER HAVEN -- State Farm says it is conducting a review of its operations that could result in local layoffs.

State Farm spokesman Michael Grimes said the companywide review is under way but he said the Illinois-based insurer has not determined how many positions could be affected at its Florida headquarters in Winter Haven, which employs about 1,400 people.

"We continually look at our operations to ensure we are effective and efficient in meeting the needs of our customers," Grimes told The Ledger on Wednesday. "We have to say there could be a reduction in staffing levels, although it's too early to know the extent."

Grimes said State Farm performs "periodic evaluations that are part of running a business" but he was unable to provide specifics or a timeline for the current review.

He said State Farm might be able to reduce the impact of local layoffs by cutting positions through attrition or employee transfers.

State Farm spent much of 2009 entangled in a dispute with state insurance regulators and threatened to discontinue homeowners coverage in Florida.

The company ultimately reached a deal with regulators in December but said it would drop roughly 125,000 homeowners' policies and raise rates by about 15 percent in Florida.

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