UPDATE: Allstate plans to cut 214 jobs in Cross Plains - WKOW 27: Madison, WI Breaking News, Weather and Sports

UPDATE: Allstate plans to cut 214 jobs in Cross Plains

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CROSS PLAINS (WKOW) -- Allstate Insurance officials say they'll close their claims center in Cross Plains by January 2013.

Company officials say 214 people will lose jobs by the end of the year. 

Allstate spokesperson Justin Herndon tells 27 News that despite Wednesday's announcement to cut more than 200 jobs in Cross Plains, the company plans to add 110 jobs across the country.

Herndon says those from the Cross Plains center can apply for those jobs, and relocation assistance will be provided if necessary.

Claims specialist Shawna Harrelson tells 27 News relocation is a possibility for her.

"Pick somewhere in the country, an area that I would want to go, and if they're willing to move me there, I would consider it," Harrelson says.

Compliance division worker Teri Barman says she would also consider extending her career with Allstate, even though a move would involve a new search for adequate child care for her young child.

"Allstate is a really good company," Barman says.

Allstate's plan to close the Cross Plains facility leaves more than a half dozen other centers still operating, including facilities in Charlotte, Birmingham and Cheyene, Wyoming.

Herndon says Allstate officials say they are always working on ways to stay efficient and are constantly reviewing the way they conduct business. Herndon says improvements in technology and recent gains led to the company's decision to close the Cross Plains center.

Harrelson says workers were also told the Cross Plains claims center was more expensive to run.

"The wages for everybody are a little higher than the other facilities across the country."

Cross Plains village president Kurt Schlicht tells 27 News he was informed of the closing through a letter from an Allstate executive, around the same time employees were informed Tuesday.

The planned closing follows the previous closing of a call center operated by apparel-maker Lands End on the same property.

Schlicht says Cross Plains has made recent strides in attracting two businesses with a total employment count of sixty.

But Schlicht says securing large, anchor businesses has been difficult.

"In this economy, we're finding it's even harder now," Schlicht says.

In 2007, then-Governor Doyle announced Allstate's plans to locate in Cross Plains, as state officials revealed the company was eligible for $750,000 in Enterprise Development Zone tax credits.

But Wisconsin Economic Development Corporation spokesperson Tom Thieding says Allstate representatives never filed for any tax credits. The tax credits are tied to creating and maintaining a certain threshold of jobs.

Thieding says companies decline to pursue available tax credits because of profitability, a fluctuating labor force and other reasons.

Claims specialist Kyle Scott has worked for Allstate in Cross Plains for four years.

Scott tells 27 News he has two daughters in McFarland's school system and relocating to stay with the company is an unlikely option.

Scott says he's still dealing with the company's Wednesday announcement and how it's left him emotionally.

"Devastated." 

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CROSS PLAINS (WKOW) -- More than 200 people will lose their jobs at Allstate Insurance's claims center in Cross Plains at the end of the year.

Allstate Insurance officials say they plan to close the auto claims center on December 31.

Some employees might be eligible to get other positions within the company.

Allstate has eight other claims centers. The Cross Plains office is the only one closing.

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