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Allstate Insurance Co.'s regional headquarters in Rancho Cordova, with approximately 160 employees, was saved from the chopping block this week when the insurance giant decided instead to close its Southern California office.
Allstate employees in Rancho Cordova were told Tuesday morning that their office would remain open.
But the insurer will close a regional office in Orange County and three other U.S. regional offices, affecting 500 jobs.
"At the most, the total effect will be 500 employees," said April Hattori, a spokeswoman at the company's Northbrook, Ill., headquarters.
Allstate plans to reveal later this year what the decision means to the 500 workers. Some may be sent to other offices, or new satellite offices may be established.
It remains to be seen whether the closures elsewhere could result in the consolidation of any additional Allstate jobs from other sites to Rancho Cordova.
California is the only state in which Allstate has two regional offices. The Orange office employs about 125 workers.
Allstate wanted to keep open the Rancho Cordova regional office because of its proximity to insurance regulators and other state leaders, as well as other Allstate operations.
"It's important to be near where decisions are made regarding the insurance industry," Hattori said.
It was only this past spring that Allstate...