Farmers Hawaii said it plans to cut 74 jobs, or about 32 percent of the company’s workforce in the islands, by the end of 2014 to improve efficiency.
The jobs will be cut in three phases with 18 people leaving within 60 days, another 34 positions eliminated between 60 days from now and the end of the year, and the final 22 jobs being phased out by the end of next year.
Farmers Hawaii currently employs 232 people.
The job losses follow Los Angeles-based Farmers Insurance Group’s purchase of AIG Hawaii Insurance Co. and 21st Century Insurance Co. in 2009, said spokesman Mark Toohey.
"When one company acquires another, you’re looking for efficiencies, aligning resources and integrating operations," he said. "This is kind of one of the last stages of the integration."
The types of jobs "run the gamut," he said, including claims, marketing, sales and service jobs, and other positions.
"It’s possible maybe they’d be in a position to relocate" within the company, and for those who will remain in Hawaii, the company plans to provide severance packages and outplacement services, Toohey said.
State Insurance Commissioner Gordon Ito could not be reached for comment.
Toohey said he did not expect the cuts will hurt Farmers’ operations.
"In terms of our customers, selling insurance, servicing the insurance and handling the claims, there’s no impact," Toohey said.
The company still maintain its call center.
"We remain committed to serving … customers" and to serving Hawaii, Toohey said.
Farmers Hawaii, formerly AIG Hawaii, rolled out its new name and logo in January 2010. At the time, then-President Robin Campaniano said the company would maintain all of its Hawaii-based services and branches on all four major islands.
Michele Saito, who succeeded Campaniano, also in January 2010, was dismissed in August as part of the restructuring. Farmers has no presidents at local offices in the other 49 states. Saito has since joined Healthways Hawaii as chief operating officer.
Saito led the re-branding of Farmers Hawaii, which included the signing of Jake Shimabukuro to a celebrity endorsement deal that had him star in TV commercials and make personal appearances.