Monday, March 12, 2018

State Farm Eliminates 900 IT Positions

   When I was a Computer Information Systems student in college back in the mid-90s, my COBOL professor used to tell my class that, if we were good little programmers, worked hard, and documented our code well, then we could hope to get a job at State Farm doing Y2K conversions on their mainframe system. The prospect of expanding a 2 digit year field into a 4 digit year field didn't appeal to me, so I went into web programming. Well, that, and the State Farm recruiter took issue with my attitude. Something about me saying "If you judge my programming ability based upon how I shook your hand, then you're not someone I'd care to work for".

   Anyway, now comes news that State Farm is cutting nearly 900 IT positions in their Bloomington headquarters. About 300 of those positions will be moving out of Illinois and into other hubs around the country. Some of the affected employees, depending on their skill set, will have the opportunity to transfer to one of the other hubs. The announcement comes on the heels of a reported pre-tax operating loss of $1.7 Billion for 2017, largely due to significant catastrophe losses from hurricanes, wildfires and storms.

   I still have a few friends from college who work at State Farm, so I made a few calls over the last few days in order to get a feel for what's going on over there. The general consensus seems to be that this mess is the result of an over-staffed, under-worked IT department that has been subjected to the unnecessary duplication of processes and a refusal to listen to ideas for efficiency. Hundreds of contract workers were hired over the years to help keep up with the bloated processes, and now, the chickens have come to roost. There is optimism, though. I'm told that the claims department went through similar circumstances a few years back and now they seem to have their act together.

   Let's just hope that the IT department finally got all their Y2K conversions done.

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