Scores of staff facing axe as Allstate NI starts restructuring process

Allstate NI has begun the restructuring process which could lead to scores of job losses in Belfast and Derry
Allstate NI has begun the restructuring process which could lead to scores of job losses in Belfast and Derry

SCORES of jobs could potentially be axed at IT giant Allstate NI as it begins a major restructuring of its operations.

The company, part of Illinois-headquartered insurer Allstate Corporation, has 2,200 staff in Northern Ireland, based in both Belfast and Derry.

It had warned in July that it was planning redundancies across all its global divisions, including the US, India and Northern Ireland, but refused to disclose the exact number being lost.

But now affected staff are being summoned to one-to-one meetings with managers and HR representatives in Belfast in the coming days.

Some have already been put on their notice.

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A spokesperson for Allstate NI said: “We have been transforming how we work to make sure we can provide customers the best experience at the lowest price.

“When employees are affected by these changes, we help them find new opportunities at Allstate or provide job placement and financial support.”

In February The Irish News revealed that 25 staff in Allstate's finance department were told that all of their jobs were being transferred to India.

Then in May the company vacated its 30,000 sq ft workspace in Strabane, though insisted there would be no job losses as a result of that decision, as around 75 per cent of its employees work remotely.

In August parent company Allstate Corporation reported a quarter-two loss of $2.7 billion, though total revenues over the period grew 14.4 per cent to $14 billion.

Allstate's woes have been mirrored by other global firms with a Northern Ireland presence

In September professional services group Deloitte, which employs around 1,000 people in the north, begun a consultation process that could see 3 per cent of UK jobs at risk of redundancy.

And Citigroup, which employs 240,000 people worldwide including 4,000 in Northern Ireland, also signalled it will cut jobs after its global CEO Jane Fraser announced a corporate reorganisation involving cuts to management layers and jobs.