State Farm closing Tulsa facilities by 2019

Updated:

TULSA, Okla. - Quick Fact:

  • State Farm will close all Tulsa facilities by 2019 
  • The company announced the move Thursday as part of a plan to streamline operations 
  • The company said 11 facilities across the country will close and operations will move to the company's headquarters in Bloomington, Ill, offices in Atlanta, Dallas and Phoenix as well as some other existing locations 
  • 530 Tulsa employees will be affected. Most are expected to move to facilities in Bloomington, Dallas, Phoenix and Atlanta.
  • FOX23 is getting more information and will update as we learn more. 

 

State Farm announced plans Thursday to streamline operations by 'exiting 11 facilities' including Tulsa. 

The company will leave Tulsa by 2019.  Officials said the changes will affect 4,200 of their 70,000 employees. They said those employees will have job opportunities at other State Farm locations. 

“We understand the decision to exit these facilities directly affects our employees and their communities. While the exits will begin in 2018 and continue over several years, we are announcing this decision now in order to give employees time to make personal and professional decisions. The company will continue to have a strong local presence in these communities through our agents and local claims employees,” said Mary Schmidt, executive vice president and chief administrative officer. 

Insurance Commissioner John Doak sent FOX23 this statement:

“I am extremely disappointed in both the decision and the communication between State Farm and my office. I was notified about the closing just ten minutes before it was announced, giving me, Gov. Mary Fallin and Tulsa Mayor G.T. Bynum no time to discuss options and try to keep those jobs in Tulsa. Just two weeks ago a State Farm executive assured me the Tulsa facility was included in the company’s future plans. As the state’s largest insurer, I would expect advance notice of such a significant decision.

I have invited State Farm’s CEO Michael Tipsord to sit down with me, Gov. Fallin and Mayor Bynum to discuss possible alternatives. In the past, we’ve always had a positive relationship with State Farm so I hope we can have a productive discussion on this issue that impacts so many Oklahomans. I understand the need to gain efficiency and streamline processes. Those are goals we have achieved here in our office and at other state agencies as well. I look forward to a constructive meeting with Mr. Tipsord.”

A State Farm representative told FOX23 that about 530 Tulsa employees at the company's facilities near 51st and 129th will be affected by the closures. Most are expected to move to facilities in Bloomington, Dallas, Phoenix and Atlanta.
 
The insurance presence in Tulsa will not be affected, according to the company. 
 
“We’re disappointed to learn that State Farm plans to leave Tulsa in 2019 as part of a national restructuring. Our first consideration is for our neighbors whose jobs are impacted. Fortunately, there remains a demand for their skills in Tulsa and we have a network of private resources through the Tulsa Regional Chamber committed to keeping them here," said Tulsa Mayor G.T. Bynum.
 
Officials at the Tulsa Regional Chamber addressed the announcement Thursday afternoon.

“Obviously, any news of regional facility closings is unwelcome, but State Farm has been a strong community partner since their Tulsa office opened in 1989, and we stand ready to assist as needed. It is our understanding that approximately 500 local State Farm employees will be impacted out of the 4,200 affected nationally. When the times comes, we at the Tulsa Regional Chamber will reach out to help any displaced personnel who may require assistance in locating a new job opportunity in our region," said president and CEO Mike Neal.

“The good news is that we have full confidence our region can accommodate any personnel displaced as part of this streamlining. Our unemployment rate has dropped for three months in a row, creating a tight labor market, and there is high project activity, with both expansions of existing companies and attraction of new businesses. These all represent significant opportunities for any displaced personnel," said senior vice president of economic development Brien Thorstenberg.

Here's the timeline:

2018

2019

2020

2021

Parsippany, N.J.

Petaluma, Calif. 

Kalamazoo, Mich.

Irvine, Calif.

Tulsa, Okla.

Indianapolis, Ind.

Medley, Fla.

Downers Grove, Ill.

West Lafayette, Ind.

Bakersfield, Calif. 

Frederick, Md.


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