The San Antonio-based company attributes the cuts to an economic downturn.
USAA’s massive headquarters sits off Fredericksburg Road.
Kin Man Hui / Staff photographer
One of San Antonio’s largest employers, USAA, says it will layoff roughly 1% of its workforce just months after a dip in the housing market led to cuts within the company’s banking arm. Approximately 475 employees will be laid off “across all of USAA’s offices and many different functions” as the company says it is reducing costs, according to a statement from the company shared with MySA Thursday, March 30.
The San Antonio-based company says it is reducing costs to invest in technology and modernize its services. The financial and insurance services company says this means “exiting unused offices, reducing management layers and expenses, and realigning staffing.”
“These decisions are never easy and are only made with careful consideration,” USAA says in the statement. “Employees affected by these changes are treated with care and compassion and provided with assistance to find new roles inside and outside of the organization.”
The most recent round of layoffs continues a nearly year-long trend. USAA Bank cut more than 90 roles in April 2022, and then an unknown number of employees in the “triple digits” in August 2022.
At the time of the layoffs in April 2022, USAA Bank projected a 34% drop to 25,000 real estate loans although it had staff in place to facilitate 38,000 loans. In February, USAA Bank then cut 130 employees as homebuying continued to decline.
“USAA continues to grow and has already hired more than 1,600 new employees in 2023,” Thursday’s USAA statement says. “These difficult decisions are a normal part of running a healthy business during an economic downturn to ensure we continue serving members well – as we have always done.”
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