Very sad. California commercial leases are so expensive. Additionally, auto claims in the state have been a losing proposition for years now. Many businesses are moving to other states which are business friendly, such as Arizona. If possible, get your ducks in a row to prepare to move to Arizona. Otherwise, get your resume in order. No severance is like rubbing salt in the wound. So very sorry.
2 replies (most recent on top)
A balance analysis,
Thank you.
The leases are one issue but not all. Also, CA had way more brick and mortar offices than honestly is needed in the current day and age.. Most insurance companies have long reduced their office footprint, Allstate really is one of the last if not the last to do so. With online capability now there's really no need for massive office spaces to be leased. Also, the overtime lawsuits and wage issues in CA play a part as well. Do I think Allstate abused their salaried adjusters? Yes in some circumstances, certainly not across the board. Still Allstate can move those jobs to more wage friendly states. Also Allstate long ago reduced it's property business in the state and its exposures there. The auto business sees declining profitibility. Overall it's a business decision at the end of the day.
As to severance, I think they will eventually offer it. They always do. Just to early yet. CA is a litigious state so offering severance eventually to the offices at the very end of the deal will make sense to avoid litigation down the road. They say a Grand Jury can indict a ham sandwich. In CA you can sue a ham sandwich and still get a verdict.
I feel bad for folks having to uproot and move. I went through several of these office closures myself over my career and saw friends out of work. There's life after Allstate thank goodness.. They will be fine.