USAA cutting 265 real estate jobs, 100+ in San Antonio
San Antonio-based USAA said Thursday it will be eliminating about 265 jobs at its bank in mid-November.
The job cuts will impact employees in its bank’s real estate lending operations and its “Real Estate Rewards Network,” which supports USAA members during the homebuying and selling process.
About 110 of the cuts will occur in San Antonio, with the rest happening in Tampa and Phoenix.
READ ALSO: San Antonio-area company among other Texas businesses with the most layoffs this year
“This decision was difficult, as we value our employees and we appreciate that they go above and beyond for our members every day,” USAA Bank President Chad Borton said in a statement. “However, it was necessary as we focus on continuing to provide members competitive mortgage products today and in the future.”
The announcement of the job cuts coincides with a slowdown in home loan applications and mortgage refinancings nationally as borrowing costs have risen. Last week, the Mortgage Bankers Association reported refinancings hit a 17½ low.
Wells Fargo last month said it was eliminating 638 mortgage jobs in response to a slowdown in the business, Reuters reported.
“The mortgage market, as a whole, is having some challenges,” USAA spokesman Matt Hartwig said. “This is about our ability to remain competitive.”
USAA will continue to offer mortgage loans and its Real Estate Rewards Network will still remain in operation, Hartwig said.
Affected USAA employees were notified Thursday and will be given 60 days to pursue open jobs at the company or elsewhere. Almost 100 employees already have been offered another position within the bank’s real estate lending operation, USAA said.
Those employees who don’t remain with USAA will receive a severance offer and outplacement services to assist with their job search.
USAA ranks as one of San Antonio’s largest employers, with more than 19,000 employees. Overall, it has almost 34,000 employees. It has added about 1,000 jobs this year, Hartwig said. It has more than 12.6 million members.
This article will be updated later today.
Patrick Danner is a San Antonio-based staff writer covering banking and civil courts. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. | email@example.com | Twitter: @AlamoPD