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Insurer replaces customer service center with new 'express' site employing 250-300
By Betty Lin-Fisher Beacon Journal business writer
Published on Wednesday, Aug 29, 2007
Allstate is closing a claims service center in Hudson, eliminating 300 positions.
An official with the insurer based in Northbrook, Ill., said the company is closing its claims service centers around the country to switch to a new ''express'' format.
The express centers, one of which has also already opened in Hudson with about 250 to 300 different employees, will streamline claims processes, company spokeswoman Lisa Finney said. Some claims will be processed within the first call.
The affected claims center employees were told recently that their positions would be eliminated by the end of next year. They can either apply for different positions in the company in Ohio, transfer to other Allstate positions in other states or take a severance package. No details of the severance package or employees' current pay were available, Finney said.
Finney did not know how many open positions there are in Ohio or whether there are enough for the 300 people whose jobs will be eliminated. The claims employees will not be able to apply for the express center jobs in Hudson because that site opened in the past year and those positions have been filled.
Asked why the current claims employees weren't put into the new express jobs, Finney said: ''Both were needed to do the transition. Throughout the transition, we needed our express claims folks to be up-to-date so it was a smooth transition.''
Jody Roberts, economic development manager for the city of Hudson, said Allstate officials have said the impact on the city might not be as bad as some people think.
''In our mind, from what they've told us, it's not as significant as it's being portrayed out there,'' Roberts said. ''They're saying 300 jobs, but a lot of those will have the possibility of being rehired right in Hudson.''
Said Hudson Mayor William Currin: ''We are always regretful to see any job loss, be it here or in Northeast Ohio in general, because it's so critical that we try to save all jobs we possibly can, at no matter what level. But we also understand that this is business.
''If there is a net loss when this is said and done, there's always the human problem of people losing their jobs and other people getting jobs,'' Currin said.
There's also a possible decrease in income tax revenue from the loss of jobs, but the city is in good financial health, Currin said.
The Hudson location has 1,600 employees at two offices on Executive Parkway, Finney said. Other divisions there are property and casualty, auto, human resources and sales staff.
''Our commitment to Hudson and Ohio will remain,'' she said.
Roberts said Allstate is the largest employer in Hudson and most likely will remain the top employer, even with 300 fewer employees.
Four other claims centers are also being closed: in Charlotte, N.C.; St. Petersburg, Fla.; Dallas, and Houston.
Hudson is one of five express locations that are open; the other four are in Indianapolis, Finney said.
Four other express locations are to open: in Cross Plains, Wis.; Las Cruces, N.M.; Cheyenne, Wyo.; and Yuma, Ariz.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com.
Allstate is closing a claims service center in Hudson, eliminating 300 positions.
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