NorthJersey.com: Parsippany to Lose 500 State Farm Jobs

Insurance company State Farm announced plans Tuesday to cut the size of the staff at its Parsippany operations center. In a move to cut costs and boost efficiency, the business said about 500 jobs will go to locations in New York and Pennsylvania over two years.

Christie Administration attempts to convince State Farm to change its mind apparently didn't work, according to company spokesperson Doug Nadeau.

Right now, the insurer employs approximately 700 people at its Parsippany location, 300 Kimball Dr. Two State Farm operations centers, in Ballston Spa, N.Y. and Concordville, Pa., will take over much of the work now handled in the township. The company said some local staffers will have an opportunity to move to jobs at the other sites.  Those who opt not to move will receive severance packages.

The Parsippany operations center opened nine years ago. The company owns the Kimball Drive building and eventually will sell the facility and lease work space for remaining employees, according to Nadeau.

While the move clearly will affect the employment picture in Parsippany, the insurance company said New Jersey State Farm customers should feel no negative impact, as independent agents will serve them.

Last May, State Farm announced that it was closing field offices in Illinois, Indiana and Michigan. The insurer is also shuttering a satellite office in Farmingdale and a claims office in Melville, N.Y.; they will be consolidated into one in Lakeville, N.Y.

The company said it will do all it can to keep as many of its Parsippany workers on the payroll as possible.

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