USAA has carried out another workforce reduction, marking the San Antonio company’s second round of layoffs this year. The insurance and banking giant confirmed the job cuts Tuesday but refused to specify how many employees lost their positions or which divisions absorbed the blow.
The move arrives during a turbulent stretch for one of San Antonio’s biggest employers. Leadership ranks have thinned considerably in recent months, and the company’s banking arm continues wrestling with regulatory headaches and uneven financial results.
Employees across compliance, risk management, and consumer lending at USAA Federal Savings Bank appeared to bear the brunt of the latest dismissals, according to online posts from workers. That subsidiary has struggled to stay profitable, losing money in three of the past four years. Its president, Paul Vincent, stepped down in May after less than three years on the job.
Spokesperson Roger Wildermuth offered a measured explanation. “We regularly evaluate our operations and adjust to serve our members more efficiently,” he said. Wildermuth added that USAA filled more than 8,300 positions this year and continues hiring as business needs evolve.
The latest cuts follow 220 layoffs in April and represent at least the seventh reduction since March 2022. Company officials have pinned previous rounds on shifting business demands, a cooling national hiring climate, and global economic sluggishness.
USAA employs roughly 37,000 people nationwide, including about 17,000 in the San Antonio region.
The downsizing also lands shortly after CEO Wayne Peacock announced plans to retire during the first half of 2025. Peacock, who has spent 36 years with USAA, became chief executive in 2020. Other senior leaders have departed too, including the chief risk officer, chief audit executive, and chief security officer.
Financial performance has shown some recovery. After posting its first annual loss in nearly a century during 2022, USAA rebounded last year with $1.2 billion in profit. That figure still trailed the $3.3 billion earned in 2021. Revenue climbed to a record $42.5 billion.
The banking subsidiary’s troubles extend beyond layoffs. Last month, USAA Federal Savings Bank agreed to pay $64.2 million to settle a class action lawsuit over allegedly improper fees charged to military members and veterans. In 2022, regulators fined the bank $140 million for failing to report thousands of suspicious transactions and for violating federal rules.
Deposits have slipped as loan volume expanded. Assets dipped to $110.4 billion in 2023 from $110.9 billion the prior year. Meanwhile, deposits fell to $97.4 billion from $102.1 billion.
USAA Federal Savings Bank merged with USAA Savings Bank in June, a consolidation Wildermuth said aimed to streamline operations. Most employees from the absorbed credit card unit received offers to continue with the combined entity.
