Costa Mesa loses the Farm

S.J. Cahn

State Farm insurance announced Tuesday that it would be closing

its major operating center in the city, which employs 525 people.

“We’ve had a presence in Orange County for a long, long time,”

said company spokesman Scott Smith, adding that the company hopes to

maintain a level of service in the area.

The closure of the center, at Highland and South Coast Drive, will

take place during the next 18 months or so, and most employees will

be offered positions at other State Farm locations, Smith added. Some

will get severance packages.

Ed Fawcett, chief executive of the Costa Mesa Chamber of Commerce,

said the delay on any changes will limit the effect they have on the

city.

“I don’t want to see any large employer like that move,” he said,

adding that he will be working with local State Farm officials to

help keep the company in town.

The paring down of offices is being done to help save money and

make the company more efficient, Smith said.

The company is estimating that the changes, which also include

closing a center in Westlake Village that employs 702 people, will

save $69 million a year.

Fawcett said that he hopes that after the closure, State Farm will

find another, smaller location to rent and keep several hundred

employees in town.

Smith said the company does plan to consolidate several claims

offices and open one “in the Costa Mesa area,” though not necessarily

in town.

Company officials said the move was possible because new

technology allows the company to more efficiently serve its

customers.