MassMutual Latest Company To Ditch Connecticut For Massachusetts
MassMutual announced plans Thursday for a $300M expansion in Massachusetts at the expense of its Connecticut presence, citing the Bay State’s growth opportunity.
“Following a thorough strategic assessment of our operations and footprint, we concluded that our home state of Massachusetts is the best place for us to grow and thrive over the long term,” MassMutual CEO Roger Crandall said in a prepared statement. “We have deep roots and a supportive community in our hometown of Springfield, and we will continue to invest and grow our workforce in the city. At the same time, as we evolve, a stronger Boston presence immerses us in a booming financial and digital economy and provides us with an enhanced opportunity to recruit innovators from the area’s deep and diverse talent pool.”
The insurance company plans to increase its Massachusetts workforce by 70%, with 1,500 jobs at its corporate headquarters in Springfield and eventually 1,000 at a new Fan Pier office in Boston. The company will make $50M in improvements to its western Massachusetts headquarters and construct a $240M, 300K SF office building on an undeveloped piece of land the company owns at Fan Pier.
“The MassMutual announcement is another win for the city of Boston, and the Seaport in particular,” Colliers International Director of Research Aaron Jodka said. “It brings another 1,000 jobs, and further cements the Seaport as a top choice for tenants, not just in Boston, but the state and region as a whole.”
Most of the Springfield expansion will come from a nearby office in Enfield, Connecticut, which will be closed by 2021. The Enfield and Springfield offices, just nine miles away from each other, are only at 60% occupancy.
"It just didn't make sense to have two offices, each 60% full, less than 10 miles from each other," MassMutual spokesman James Lacy told MassLive.
MassMutual will also shutter offices in Charlotte, North Carolina, Somerset, New Jersey, Memphis, Tennessee, and Johnstown, Pennsylvania. Those jobs will be relocated to Massachusetts.
While Crandall’s announcement cited Massachusetts’ talent pool as a driving factor to consolidate within the state, its business environment also played a role. The company is receiving a $46M incentive package from the commonwealth, which Gov. Charlie Baker’s administration said was the largest incentive package ever awarded to a Springfield-based company. The award is dependent on the company adding 2,000 jobs in Massachusetts.