Allstate to focus on direct, online

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Allstate Corp., Northbrook, Ill., said it will restructure its marketing operations to concentrate on direct and online sales, including a larger commitment to marketing. Allstate said it plans to spend $700 million through 2000 to make the change, including investments in systems development, marketing and advertising. The company will ax 4,000 jobs, or 10% of its work force, in an effort to cut $600 million in annual costs to fund those changes. The company didn't reveal how much it plans to spend on advertising but said it would be an increase over the $85 million spent in 1998. In July, Allstate broke a new ad campaign from Leo Burnett USA, Chicago.

Copyright November 1999, Crain Communications Inc.

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