Syracuse (WSYR-TV) - Roughly 60 percent of workers at the Travelers Insurance office in Downtown Syracuse will be out of a job by the end of next year.
The insurance company is consolidating services across the country to cut expenses and boost profits.
Questions to the mayor's office were referred to Ben Walsh with the Neighborhood and Business Development Department. Walsh claimed that a fax to city hall on Tuesday morning was the first notice of Travelers' plans.
"As of about 11 a.m. this morning, they were going to be notifying approximately 173 employees that their positions were being eliminated," Walsh explained.
"You've had banks consolidating, you've had insurance companies consolidating, you've had brokerage, etc, that have all been sort of going through this process of trying to streamline what they're doing and this is a part of that,” said Kevin Schwab, with CenterState CEO.
The company reported substantial gains in net and operational income for the second quarter, but they're looking to save $140 million through consolidation.
Transcripts from an earnings report offered more insight, "....the personal auto marketplace is changing. We remain committed to offering a product that is both competitively priced and delivers an appropriate return for our shareholders..."
The ripple effect of job loss concerns Eureka Crafts store manager Kayla Kalin, who knows downtown workers often spend their breaks shopping.
"Any job loss is a loss for all of us in Armory Square because that's one less person who is coming down to get a coffee everyday. That's one less person to get a lunch. That's one less person to stop in and get a little birthday gift," said Kalin.
"There is also the psychological impact," Walsh added. "We have a lot of really exciting developments happening downtown. We're very much on an upward trajectory. Buildings are being redeveloped. So, you hate to have setbacks like this."