San Antonio/ Retail & Industry
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Published on April 11, 2024
San Antonio's USAA Cuts 220 Jobs Amid Broader Insurance Industry Workforce ReductionsSource: Google Street View

USAA, the San Antonio-based insurance and financial titan, cut 220 jobs this week in what's being called a workforce "reprioritization." This marks the latest in a series of layoffs that have slashed over 1,200 jobs from the company's roster since 2022. The crumbling tally of jobs reflects a shaky trajectory for a firm that once boasted unshakeable financial footing. According to the San Antonio Report, USAA's spokesperson Roger Wildermuth explained, "USAA continues to make necessary adjustments to run a healthy business and provide members with exceptional service and competitive prices."

Wildermuth asserted that despite the cuts, the company's hiring efforts forge ahead, with about 2,900 roles filled in the current year. However, the overall workforce hovers around 37,000, unchanged nationally. The firm remains tight-lipped on the departments excised or the geographical distribution of the layoffs, though the impact in San Antonio, the company's hub, where 19,000 employees constitute among the metro's largest workforces, is undeniable. The Express-News notes that the layoffs spanned both remote and in-office positions, underscoring the indiscriminate nature of the corporate culling.

2022 was a tumultuous year for USAA, which reported its first loss since the roaring '20s—a $1.3 billion deficit compared to 2021's $3.3 billion profit. The company hasn't released the 2023 annual report yet, but customers are already grunting under the weight of a 14.7% spike in insurance premiums as relayed by the San Antonio Report. The inevitable clash between keeping a business afloat and sustaining consumer affordability is throwing stark ripples across an industry that's no stranger to upheaval.

In a bid to soften the blow of layoffs and restructure the workplace climate, USAA introduced a dedicated Slack channel designed to absorb employee feedback, as an aid in gauging morale and operational effectiveness. This tool, according to screen captures shared with the San Antonio Report, employs artificial intelligence to sift through "top feedback themes and sentiment." Nevertheless, some may find it harder to reconcile the company's care in feedback collection with stinging reality of job losses.

The layoffs at USAA play out against broader industry trends where major players like Farmers Insurance Group, Geico, and Liberty Mutual Insurance Co. have also pruned their workforces. A report by Express-News highlights that property and casualty carriers slashed at least 6,800 jobs in 2023 alone, alluding to a harsh landscape for insurance and finance sector employees. Meanwhile, USAA, alongside other conglomerates, faces the challenge of maneuvering through a post-pandemic economy while grappling with corporate restructuring and the lasting consequences of cost-cutting measures.