American Family moving 200 jobs to contractor

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MADISON, Wis. (WMTV) -- American Family Insurance plans to shift approximately 200 in-house technology support jobs to a contractor, the Madison-based company confirmed Wednesday. A spokesperson for the insurance giant told NBC15 the company has offered all affected employees re-training opportunities as well as other options to help with their transition.

American Family spokesperson Ken Muth explained that the workers were told about the coming changes on Tuesday and Wednesday. However, he said they had been alerted in July that the company was exploring such options.

Almost all of the positions are based in Madison, Muth confirmed.

He said the re-skilling offer to employees would provide them with training that would prepare them for new, better opportunities within the company, moving from the technical support side and into development.

“They are developing a skill that will benefit them and that will benefit us,” Muth said.

If the workers do not choose that option, they will be allowed to apply for other roles within American Family or with the contractor, Capgemini. They will be offered a severance package if they choose to leave the company during the transition.

“We value and care about our employees and want to provide them options,” Muth added.

Employees will be given three weeks to decide and the whole process is expected to take three to six months, Muth continued. After it is complete, there will still be approximately 80 similar positions within American Family, almost all of which are in Madison.

According to Muth, American Family has built a relationship with Capgemini for the past ten years. He pointed out that they will be able to provide more around-the-clock service, which is important as technology has become an important factor in its business.