USAA is laying off 130 employees, primarily from the mortgage services departments. A spokesperson for the company stated that they are making hard business decisions to adapt to the changing marketplace and members’ needs, which sometimes involves investing in growth areas and scaling back in others.
The layoffs represent 1.6% of the bank’s total workforce, but the exact number of mortgage employees affected was not specified. The layoffs come during an uncertain period in the housing market, with home appreciation growing 40% in two years in San Antonio.
A spokesperson for USAA, Brad Russell, commented on the bank’s recent layoffs of 130 employees, predominantly from the mortgage services departments. He stated that the layoffs were a difficult business decision made to adapt to changes in the market and meet the needs of their members, and sometimes require scaling back or stopping work in certain areas. He also noted that the layoffs represented approximately 1.6% of USAA’s total banking workforce but did not specify the percentage of mortgage-specific employees affected.
Russell further explained that USAA is offering a range of benefits, services, and tools to assist affected employees during the transition, including a paid transition period and career workshops. He encouraged eligible employees to apply for other open positions within the bank, P&C, and life companies.
The layoffs come during an uncertain period in the housing market, as mortgage application rates have been fluctuating amid an overall decline. USAA joins Wells Fargo, which also cut jobs in December 2022, as the mortgage industry faces challenges.