FM to send workers to Massachusetts as part of HQ relocation

Downtown Providence isn’t the only target destination for FM’s planned departure from Johnston.

The global insurance company, formerly known as FM Global, is also sending an unspecified number of local workers to Massachusetts as part of a regional approach that includes facilities in Norwood and Boston, the company confirmed in a statement to Rhode Island Current Friday afternoon.

“The specific timing of individual employee moves is still being determined, and we will continue to communicate directly with employees as those plans progress,” the company stated. 

There will also be a “limited number” of workers laid off in conjunction with the move, the company said.

Ahead of Johnston exodus, Polisena says FM to lay off local workers

The confirmation comes four days after the commercial property insurer revealed that it plans to move out of its wooded campus off Central Avenue in Johnston by the end of 2027, relocating its global headquarters to downtown Providence. In February, FM bought the 10-story office tower in Providence, colloquially referred to as the IGT building, for $69 million. 

The glass-and-metal building in downtown Providence will still house its global headquarters, serving as the primary location for corporate functions including finance, legal and human resources, FM confirmed. 

However, an unnamed number of other workers based in Johnston will move to other FM locations, including the recently redeveloped global training center, in Norwood, FM confirmed.

Hours before the company confirmation, Rhode Island Current spoke to two current and one former FM employee, who provided additional details and documents detailing the cross-state relocation and layoff plans. The workers spoke to Rhode Island Current under the condition of anonymity, fearing repercussions for their jobs and pension benefits. The information was confirmed through internal company portal updates shared with Rhode Island Current.

According to one administrative worker, roughly 100 people who previously worked in Johnston have already relocated to Norwood over the last year. Another 150 employees across multiple departments were given notice this week that they, too, will have to relocate to Norwood by the end of next year, or else lose their jobs, a separate, senior employee said. Severance packages and relocation benefits have not been offered.

The $593 million project to redevelop its Norwood campus, including a 320,000-square-foot building designated as the company’s global training center, has been years in the making. First solidified under a tax-financing agreement with the Massachusetts Economic Assistance Coordinating Council in 2023, the redeveloped 17-acre campus off Route 1 was completed earlier this year.

FM also leased office space in Boston’s South Station Tower last year.

But until this week, the Fortune 500 company never publicly indicated or told employees that it planned to abandon its Johnston headquarters or reduce its local workforce. Workers were informed at a global town hall held Wednesday, employees said.

Roughly three dozen corporate workers were laid off in October, unrelated to the relocation plans, FM said Friday. Employees who work in facilities services and the cafeteria within the 93-acre Johnston campus were also given notice this week that they would be out of work when the move is completed, expected by the end of 2027.

FM’s influence over the state as one of its largest employers, with a 1,500-person workforce in Johnston and its Glocester research campus, prompted lawmakers to rewrite a longstanding state law that capped investments by insurance companies in non-traditional assets. The 2025 law change benefits multiple local insurance companies, but was born out of a request by FM executives.

Senate President Valarie Lawson and House Speaker Christopher Blazejewski did not immediately respond to requests for comment. Gov. Dan McKee’s office did not respond to requests for comment either. 

“Rhode Island has always been our home, and establishing our global headquarters in downtown Providence ensures the state remains central to FM’s future,” the company said Friday.

The cross-state move comes as Hasbro Inc. plans to abandon its Pawtucket headquarters in favor of the Boston Seaport by the end of the year. 

While FM is still maintaining a presence in Rhode Island, the unexpected loss of a local workforce stung Johnston Mayor Joseph Polisena Jr.

“It represents a very troublesome trend we’re seeing with Rhode Island companies that are leaving,” Polisena said in an interview Friday. “It seems like they tried to cover it up.”

Federal law requires employers with more than 100 full-time employees to give state and local officials at least 60 days notice before mass layoffs or facility closings. FM has not submitted any notices to the Rhode Island Department of Labor and Training regarding layoffs or closings as of Friday morning, Edwine Paul, an agency spokesperson, said.

However, notice wouldn’t be required if fewer than 50 people were laid off under federal guidelines.

Polisena said he believes the workforce reductions were intentionally kept just below the minimum requiring state notice. 

“I will let the people who are reading this come to their own conclusion about that,” he said.

In addition to job losses for those who were laid off or who choose not to make the 40-mile drive to Norwood, Polisena is worried about the tax losses for Johnston. FM contributes around $3 million in property and tangible taxes to the town, equal to 2% of its $144 million annual budget. 

This story will be updated.