USAA today announced a reorganization resulting in the loss of 1,380 out of 24,000 jobs. The San Antonio, Texas-based firm cut 5.5% of its positions yesterday after a month long review process.
"They were across the board," said USAA spokesman Tom Honeycutt, adding, "They were not, however, in any customer contact units." The investment unit also remain unscathed, said Honeycutt.
USAA members will be informed of the move through various publications, including an annual progress report set for April and its bimonthly publication for members. The next issue, which will ship in approximately two months, will reach 3.4 million readers. USAA also released its announcement to local media yesterday.
Honeycutt said the move was driven by "current economic conditions."
"Its not because of the stock market downturn per se but were just looking at what were faced with today but what were looking at down the road. In short, its adjusting our business in light of the conditions we face today and expect to face going forward," explained Honeycutt. "We had built an organization based on a constantly growing economic picture. If thats not going to be the case in the near- or even mid-term, then you have to adjust the organization."
Affected employees will receive 60 days of full pay and benefits in addition to a severance package.