San Antonio-based USAA Lays Off 220 More Employees Amidst Ongoing Economic Struggles

San Antonio-based USAA Lays Off 220 More Employees Amidst Ongoing Economic Struggles

In a shocking turn of events, San Antonio-based financial services firm USAA has announced a round of layoffs, cutting another 220 jobs. This marks the company’s sixth such reduction over the past two years, underscoring the organization’s ongoing economic struggles.

Details of the Layoffs

USAA officials have so far refrained from providing specifics about which departments have been affected and how many of the layoffs took place at its Alamo City operations. The company is a significant employer in San Antonio, home to around 19,000 of its 37,000 nationwide workforce.

Roger Wildermuth, the Public Relations Director at USAA, noted, “USAA continues to hire, including approximately 2,900 jobs filled so far this year, but this reprioritization is necessary due to changing business needs.”

Persistent Cutbacks at USAA

The layoffs this week form part of a pattern of workforce reduction at USAA that has seen around 1,200 positions eliminated over the last two years. The company has cut roles across various departments, including IT, human resources, client-advising, and the mortgage unit of its USAA Federal Savings Bank.

The most recent prior round of layoffs occurred in May 2023 when 300 jobs at USAA were cut. This event coincided with the financial services firm reporting its first annual loss in a century, attributed to a combination of inflation, plummeting investment returns, and a surge in natural disasters affecting its insurance division.

Steady Employment Despite Cuts

In spite of the repeated layoffs, Wildermuth has highlighted that USAA’s total employment numbers have remained stable due to continuous hiring to fill other positions. However, the necessity for these layoffs paints a worrying picture of the financial health of the organization.

USAA – A Key Player in San Antonio’s Economy

Founded in 1922, USAA has been a household name in San Antonio, playing a crucial role in the city’s economic growth. The company provides a range of financial services, including banking, investments, and insurance. The repeated workforce reductions, however, have raised concerns about the firm’s long-term stability. A firm of its stature undergoing such difficulties is not just a concern for the company but also a blow to the San Antonio economy at large.

Looking Ahead

As USAA navigates these challenging times, it will be crucial to see how the company plans to restore its financial robustness while maintaining its commitment to its nationwide workforce. While the current series of job losses is unfortunate, it is hoped that they will pave the way for a more stable future both for the company and its employees.