Allstate Corp, the number two property-casualty insurance company in the US, has announced it will shed 4,000 non-agent jobs as part of a plan to increase its focus on the internet. The cuts, which affect roughly 10% of the company’s non-agent workforce, are expected to save about $600m per year in expenses, which Allstate will use to invest in its internet and direct access, or call center, channels. The plan also calls for 6,500 full-time agents to be transferred to freelance contracts. The company will integrate its sales force of 15,200 with its telephone and internet units and sell Allstate-branded products with a uniform pricing and service model across all channels.
Northbrook, Illinois-based Allstate said the moves will result in a fourth-quarter restructuring charge of $100m, with a further $100m in charges to be taken during fiscal 2000. The company said that over the next two years it will outlay $300m in capital expenditures to support the new program and will also spend about $700m on related systems development and implementation costs, rollout costs and advertising. Separately, Allstate increased its share repurchase plan by $2bn, adding to the original $2bn plan, which was about 50% complete.
