Laid off from State Farm.

State Farm has repeatedly cut jobs in one place by moving the work somewhere else, to Bloomington and its hub cities as smaller offices closed and, in 2023, to an outside firm. For people offered a place at the other end, the decision was whether to follow it.

What we know about State Farm severance and layoffs

  • 25 State Farm filings across 11 states in our WARN tracker, 2012 to 2023
  • 125 jobs in a January 2023 Texas notice for State Farm's Richardson site
  • About 13,000 State Farm employees in McLean County, per the company in 2025
  • 8,876 fewer State Farm employees at 2018's end than a year earlier, Fortune reported
  • About 30,000 claims employees at State Farm as of September 2026

The most recent State Farm layoff we've found

State Farm said in September 2026 that it plans to grow its claims workforce by about 10%, or about 3,000 people, during 2027, and to hire about 5,500 people into claims that year as it weighs attrition, customer demand and growth, according to its September 2026 release.

What State Farm layoffs have meant for employees

Each business area runs State Farm's 2025 exit program for itself, deciding if, when and how to use it, a spokesperson told WGLT, so whether you see an offer, and when, turns partly on which part of the company you work in. State Farm also said it didn't expect its McLean County headcount to change significantly. The last time it led with voluntary exits, in its 2017 IT realignment, it said it was uncertain how many people would accept, WGLT's October 2017 story reported, and the following March it announced the Bloomington IT cuts, the first count of jobs that realignment would cost, according to WGLT's March 2018 story. If your area opens the program and you're eligible, it may be worth reading the terms with that history in mind, since a voluntary exit is a choice the program leaves to you.

The 2017 closings came with job opportunities at State Farm's other locations, and when it announced them, a spokesman told WGLT it was impossible to predict the impact by location, because the moves involved individual workers' decisions over several years. Pay was a second question. In 2018, as State Farm expected claims jobs to move into Bloomington while similar IT positions were set to grow in the hubs, a spokesperson declined to compare their pay and called it proprietary, the March 2018 story said. If State Farm offers you a role in another city or another department, the pay, the title and the start date are fair things to see in writing as you weigh it against leaving.

The 2023 outsourcing put a different decision in front of IT staff, whether to keep doing similar work for a new employer. People who took HCLTech jobs spent that spring adjusting to a new company, and some were uneasy about new duties and changes to their benefits, WGLT reported. An outsourcing researcher at New York University told the station that even for people who are retained, the work is likely to change in nature once a vendor runs it. If a vendor taking on State Farm work offers you a position, it may be worth laying the two benefit packages side by side and asking how your State Farm service would carry over, since the title on the offer says little about either.

State Farm built its hub system to address skilled-labor shortages in the smaller cities that had served as regional headquarters, concentrating jobs in Dallas, Atlanta and Phoenix, where it already had a sizable presence, WGLT reported in October 2017. Michael Tipsord, then chief executive, had said in remarks the previous October that the company had and would keep about 15,000 workers in Bloomington-Normal and about 10,000 apiece in those three cities. For someone in a smaller office, staying with State Farm could mean moving to one of those four metro areas. For a claim filed from Illinois, Arizona, Texas or Georgia, Illinois unemployment benefits and the pages for Arizona, Texas and Georgia set out how it works there.

The 2019 Jacksonville letter left room for its dates to move. State Farm's employee relations manager said the affected employees had all been notified and that the company would update the state if its plans or the timing of separations changed, WJCT reported. If a State Farm closing date applies to you, the timing is worth reconfirming as that date nears, since the Jacksonville letter allowed for changes and said the state would hear about them.

The reasons State Farm gave for these moves were about the business. It told KNKX the Tacoma exit came from streamlining processes, customers' changing needs and making better use of its space, and its spokesman had described the 2017 consolidation in the same terms of efficiency, technology and larger locations. State Farm attributed part of its 2018 staff decline to automation and technology, Fortune reported, as WJCT relayed. When a hiring manager asks about leaving State Farm, those stated reasons are worth leaning on, and telling employers about a layoff has more on putting them into words.

A sourced history of State Farm layoffs

  • January 2023, State Farm announces IT support move to HCLTech

    State Farm announced it would hand its day-to-day IT help desk and infrastructure work to HCLTech, then told Illinois officials it would lay off 451 Bloomington employees on March 31, WGLT reported. A spokesperson said many had been offered HCLTech jobs in similar roles.

  • June 2019, State Farm gives notice of Jacksonville center closing

    In a June 26 letter, State Farm told the state it would close its Jacksonville Operations Center and eliminate 300 jobs, 143 on August 31 and 157 on November 30, WJCT reported.

  • March 2018, State Farm announces about 890 Bloomington IT cuts

    State Farm said it would cut about 890 IT jobs in Bloomington while similar jobs were set to grow by 280 in Phoenix, 70 in Dallas and 30 in Atlanta, WGLT reported. Some could apply for other State Farm jobs or relocate.

  • January 2018, State Farm says it will leave Tacoma

    State Farm said it would leave Tacoma by the end of 2018, moving some 1,400 jobs out of downtown, KNKX reported. About 600 employees were to transfer to nearby DuPont, about 250 jobs to Illinois and 150 to Arizona.

  • May 2017, State Farm plans to close 11 smaller facilities

    State Farm said it would move 4,200 workers from 11 smaller leased sites in nine states to Bloomington and hubs in Atlanta, Dallas and Phoenix over four years, and that they'd have job opportunities elsewhere in the company, WGLT reported.

What to do if you're laid off from State Farm

State Farm layoff and severance questions

What severance has State Farm given laid-off employees?

State Farm's 2017 IT realignment began by offering severance payments to certain employees who chose to leave, WGLT reported, and WGLT's March 2018 story said some IT staff losing jobs that year were retiring and might be eligible for severance benefits. Neither story says how much those payments were or how they were calculated.

How does State Farm's voluntary exit program work?

State Farm told employees by email in September 2025 that if and when changes are needed, it would start with voluntary staff reductions whenever possible, without ruling out layoffs, WGLT reported. The program applies to employees who qualify for early retirement based on age and service, with offerings that vary by department, according to 25 News Now.

Has State Farm filed WARN notices for its layoffs?

State Farm's name is on 25 filings in our WARN tracker, spanning 2012 to January 2023. Two came that month, one for 451 Bloomington layoffs tied to the IT outsourcing, which WGLT reported, and one for 125 jobs at State Farm's Richardson, Texas, site.

Is State Farm closing its Bloomington headquarters?

In March 2026 State Farm announced plans to close its Corporate Headquarters and Illinois Operations Center by the end of 2027, moving its Bloomington staff into the Corporate South complex, WGLT reported. A spokesperson said Corporate South can hold all of State Farm's roughly 13,000 local employees and that many hybrid workers would spend more time in the office. The company said hybrid employees would be together more but not back full time, with each business area setting schedules.

What happened to State Farm employees when IT went to HCLTech?

Most of the people doing that work went with it. State Farm told WGLT in April 2023 that the majority of employees who had done its help desk and infrastructure work joined HCLTech in similar roles supporting State Farm, and the station reported that others retired and a small number were let go.