Ax farmers from 554 workers in the 21st century

WOODLAND HILLS - California's largest auto insurer, Farmers Insurance Group, says it plans to slash jobs at the offices of its newly acquired 21st Century Insurance unit in Woodland Hills, it was reported today.

Los Angeles-based Farmers told employees that it would cut 554 jobs by the end of this year and that the total would reach 750 by the end of 2010, according to an article on the Los Angeles Times Web site.

The Woodland Hills complex, which had been 21st Century's headquarters until last November, currently has 979 employees, Farmers said, according to The Times.

Farmers completed its purchase of 21st Century from troubled insurance giant American International Group Inc. on July 1.

After a two-month evaluation, Farmers decided to reduce the Woodland Hills workforce as part of an effort to streamline operations, Senior Vice President Mark Toohey said in remarks reported by The Times. There was no decision on whether the firm would remain at the leased location in Woodland Hills.

Some of the displaced workers could be offered jobs at 21st Century's executive offices in Wilmington, Del., while others could be transferred to other Farmers operations in Southern California, Toohey said.