Observer-Dispatch
NEW HARTFORD — Despite companywide layoffs at The Hartford Financial Services Group, including positions at its New Hartford site, the company still plans to move into the New Hartford Business Park on Nov. 10, a spokesman said Tuesday.
“We are committed to being in New Hartford, and we are committed to moving into the office and occupying it,” spokesman David Snowden said.
Headquartered in Hartford, Conn., the insurance and financial products company has been leasing an 81,000-square-foot building on Middle Settlement Road, and next week will move into its newly built 129,456-square-foot building in an office park off Woods Highway.
The company announced it would lay off 500 people companywide, but Snowden would not say how many workers at the New Hartford site would lose their jobs.
The New Hartford office has 680 employees.
The layoffs won’t affect Hartford’s agreement with local governments to obtain the tax incentives, Snowden said.
“We do not anticipate that this will affect our (PILOT) agreement,” Snowden said.
The city of new Hartford won’t receive any tax revenues because the company is moving to the office park under a 15-year payment-in-lieu of taxes and financing agreement.
Snowden did not know when the employees’ last day would be, adding that it will vary by individual and by department.
“These are difficult decisions to make,” Snowden said. “And I think in today’s economy, companies are making prudent spending decisions and The Hartford has engaged in a corporate-wide program to drive unnecessary costs out of the business.”
The Hartford cited losses in its investment portfolios and declining revenues as reasons for the cuts. The company is cutting jobs and reducing its 2008 expenses by about $250 million by the end of 2009, Snowden said.
Employees who work in the life and property-casualty insurance operations and some corporate staff will be laid off, Snowden said.
Companywide, there are 31,000 employees.
Officials began notifying workers of the layoffs Monday.
The Hartford will fill only business-critical positions and look to attrition to reduce staff, Snowden said.
Any affected employees will receive severance packages and career transition services to explore positions either inside or outside the company, Snowden said.
“I feel it’s unfortunate, but it’s what’s happening all over the country,” said Christine Krupa, 2nd Ward councilwoman. “Nobody wants to see anyone laid off, and you know, hopefully the layoff time will be short and people will get called back and the country will be up and running economically as it should be.”
Information on the number of Hartford offices across the nation was not readily available, Snowden said.
The company is laying off 125 employees in the Hartford, Conn., area and some 375 workers across the country, Snowden said.
