USAA Announces More Layoffs in San Antonio, Sparking Economic Concerns

USAA Announces More Layoffs in San Antonio, Sparking Economic Concerns

In a move that has sent ripples through San Antonio’s economy, USAA, one of the region’s largest employers, has announced another round of layoffs this year. The financial services company, which has served as a significant source of employment in the city for the past 50 years, stated that these layoffs come as part of a reorganization effort encompassing their workforce.

Multiple Rounds of Layoffs Affecting San Antonio Residents

The recent announcement comes not long after USAA laid off nearly 1,000 workers in 2023. According to David Vequist, a Professor of Management at the University of the Incarnate Word’s H-E-B School of Business and Administration, this indicates that over 1,200 employees have lost their jobs since 2023. However, the exact number of people affected by this most recent round of layoffs remains undisclosed by the company.

The Potential Impacts on San Antonio’s Economy

The continuous shedding of jobs by such a major employer immediately raises concerns about the city’s economic health. As David Macpherson, Chair of the Economics Department at Trinity University, explained, “an increase in layoffs can contribute to a rise in the city’s unemployment rate, and the exact impact will depend on the scale of the job cuts.”

There is also the ripple effect to consider. Macpherson adds, “other businesses that rely on the spending of USAA workers could face negative consequences.”

Signs of a Strategic Reorganization Rather Than Financial Trouble?

Despite the series of job cuts, USAA has also been hiring a substantial number of employees during the same period. This suggests a strategic reorganization rather than financial distress, posits Thomas Tunstall, the Senior Director for Research at the UTSA Institute for Economic Development. “USAA seems to be re-examining its operations in an attempt to become more efficient and potentially integrate more innovative strategies and technologies,” he said.

Implications of Technological Advancements in the Workplace

Professor Vequist echoes this sentiment, suggesting that increasing adoption and integration of artificial intelligence (AI) could be significant factor in the layoffs. “Increased productivity through AI implementations, such as chatbots, are replacing certain types of jobs. AI chatbots, in particular, have the capacity to answer a wide variety of inquiries from both clients and employees, effectively making some positions redundant,” Vequist explained.

As San Antonio faces the economic implications of these layoffs, the city will need to navigate the realities of an evolving business landscape shaped by technological advancements and changing corporate strategies.