California State Compensation Fund workers in Santa Rosa have been told office will be consolidated into the insurer's Pleasanton facilities in 2012.
The closure is part of a statewide restructuring aimed at saving the quasi-public workers compensation insurer $200 million.
The Santa Rosa office has 184 employees. The state fund office in Rohnert Park will not be impacted.
"In recent years, we have made strides in improving services, enhancing our customer focus and making it easier to do business with us," said State Fund Chief Executive Tom Rowe. "Now we are taking several steps to achieve our goal of greater efficiency and long-term operational stability."
The 100-year-old insurer is a state agency that operates much like a private corporation. Serving about 150,000 California employers, it's charged with being the "insurer of last resort" for employers who can't get their legally required workers' comp coverage from other companies.
State Fund has no plans to lay off any of its 7,400 workers, down from a high of about 10,000 in 2002, said spokeswoman Jennifer Vargen. However, many workers will be asked to transfer to new locations.
(This story contains information from the Los Angeles Times.)