Subscribe to glassBYTEs!

USAA to Consolidate Facilities, Offers to Relocate Employees

USAA Insurance has announced that it will consolidate its Sacramento operations and part of its Norfolk, Va., operations into other U.S. locations to reduce excess real estate capacity for the company, which currently has more than 5,000 unneeded vacant seats. Employees in good standing affected by the consolidation will be offered relocation to another USAA office in San Antonio, Phoenix, Colorado Springs or Tampa, Fla.

"This consolidation of facilities is driven by real estate capacity and expenses," says USAA president and chief executive officer Joe Robles. "We value our employees and the world-class service they provide our members. We have a job for every eligible employee in good standing, and we have established a special, attractive relocation program to help retain as many employees as possible.

"USAA is financially strong and growing, in part due to our ongoing vigilance in managing expenses," Robles adds. "Carefully managing expenses also ensures we can continue to provide competitively priced products and services for our membership and career opportunities for the employees who serve them."

The consolidation and employee relocation efforts are expected to be complete by the end of September 2009. There will be no impact on member customer service. The company has approximately 625 positions in its Sacramento office and 475 positions in Norfolk directly impacted by the consolidation; employees who cannot relocate will be eligible to be offered generous severance packages.

USAA will keep intact its Norfolk claims and legal staff to support strategic business needs, but will lease space for them in the Norfolk area in a location to be determined. The consolidation does not apply to field claims personnel in Norfolk and Sacramento; these individuals will continue to work remotely as they do today.

USAA offices in San Antonio, Phoenix, Colorado Springs and Tampa continue operations as usual, while also welcoming new colleagues from Sacramento and Norfolk. The company expects to add between 250 and 1,000 customer service and claims positions to those locations. The company plans to fill those positions with relocating employees and through hiring efforts in existing local communities.

USAA plans to sell both facilities.

Need more info and analysis about the issues?
CLICK HERE to subscribe to AGRR magazine.