State Farm has revealed that it will be closing its office in Earth City, MO, and laying off 111 employees who are based at the location.
News of the office closure and layoffs came to light after State Farm sent a Worker Adjustment and Retraining Notification (WARN) to the Missouri Department of Higher Education and Workforce Development last month, which detailed the closure plans.
“This reduction in force/movement of the positions is expected to be permanent. The entire facility will be closed as a result of this action. No bumping rights exist for employees,” State Farm said in the notice.
The insurer said that the layoffs will take place next year, January 31, 2021. Banking-related positions will be affected, such as customer service representatives, bank operations representatives, and consumer loan credit analysts.
A company representative told St. Louis Business Journal that the closing is part of State Farm’s strategy to exit all banking operations.
State Farm had been preparing its withdrawal from the banking business since earlier this year. In March, the company entered into a strategic alliance with U.S. Bank, in an arrangement that would see US Bank assume the existing deposit and credit card accounts of State Farm Bank.