California State Automobile Association will close its California call centers - including its 500-employee Elk Grove facility - earlier than expected and send the jobs out of state, citing the cost to do business in California.
AAA's Elk Grove site on West Taron Drive will close by the end of 2010, said spokeswoman Cynthia Harris. Last October, AAA officials had said they planned to close the facility by 2011.
AAA's Livermore facility will close on Sept. 1. Its Irvine center will close in March 2009.
In all, about 900 people work at the three centers.
"It costs more to do business in California than other states," she continued, adding that increased demand for AAA's services and AAA's expanded geographic reach were also factors.
The Elk Grove site opened in 2003 and handles about 200,000 insurance, membership and road service calls per month. Those functions will be handled in Arizona and in Oklahoma City, Okla., Harris said.
A service center will remain open for members at 8225 Laguna Drive in Elk Grove.
"This was not unexpected news," said Steve Czarnecki, executive director of the Elk Grove Economic Development Corp., who had hoped that because AAA owns the West Taron Drive property that houses the center, it would be reluctant to make an early exit.
"We're disappointed that they're doing it. It's not good news for those who are working there," he said.
As for the call center's staff, Czarnecki said: "As we get closer, we plan to reach out to employees" with training and other assistance and will look to the business development group Sacramento Area Commerce & Trade Organization for help.
Call The Bee's Darrell Smith, (916) 321-1040.
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