Transitioning Jobs at MetLife
Insurance giant MetLife Inc. recently announced a plan to move some 2,600 positions into newly created facilities in North Carolina by the end of 2015. And this means a lot of folks in the Northeast could be facing some tough choices in coming months.
The move would affect offices in five Northeastern states and California. MetLife spokesman Jon Calagna told Insurance Journal that overall, offices in Somerset, N.J., and Lowell, Mass., will close doors. Offices in Bloomfield, Conn., and Johnstown, Penn., as well as those in Boston and Warwick, R.I., will see headcount reductions. Two offices in Aliso Viejo and Irving, Calif., will also be impacted. MetLife didn’t disclose specific breakout numbers for affected workers from each location.
Even for those whose offices are closing, some will be able to keep their current positions. MetLife spokesman Calagna said most employees in Lowell, Mass., will now be working from home, though some jobs there will be eliminated. MetLife Home & Auto Insurance unit had more than 200 workers in Lowell, as of 2011, according to the city’s website.
In Boston, some – but not the majority – of the workers will also be working from home, while some jobs are moving to North Carolina and some will move to a new location in the same area. No other Northeast city has similar work-from-home situations.
For those in affected offices and without work-from-home options, there could be some tough choices ahead.
Should they look for new jobs near their homes, or should they pack up and move to North Carolina? But even if they decide to relocate, landing new jobs would not be a sure thing. MetLife said that except for a few key critical senior managers who have been asked to relocate, all other current MetLife workers will need to apply for any positions in North Carolina, and that they will not be given preferential treatment.
MetLife employs some 23,000 U.S. administrative workers in 30 locations, mostly in the Northeast – so this move will affect about 10 percent of its U.S. workforce. The company will receive close to $100 million in incentives from North Carolina over the next 12 years if they hit certain job-creation targets. The company plans to invest $125.5 million in North Carolina to create hubs for its U.S. retail business in Charlotte and for its global technology and operations organization in Cary.
As MetLife’s decision shows, state incentives – for better or for worse – continue to play an important role in attracting new jobs. For North Carolina, it now means thousands of new insurance jobs that will pay an average of $80,000 or more. “MetLife will be investing significant capital in North Carolina including real estate. The incentives were necessary to help offset some of these expenses. We would not have moved jobs to North Carolina without them,” the MetLife spokesman said.