Cuts were necessary to keep its mortgage product competitive, the company said
Financial services company USAA plans to eliminate about 265 roles across its bank’s real estate lending business and Real Estate Rewards Network operation as challenges to the mortgage market continue, according to a report by the San Antonio Express-News.
The cuts are planned for mid-November. About 110 of the affected roles are based in San Antonio, while the rest are in Tampa, Fla., and Phoenix. Employees in the rewards network business support USAA members in the homebuying and selling process.
“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. “However, it was necessary as we focus on continuing to provide members competitive mortgage products today and in the future.”
“The mortgage market, as a whole, is having some challenges,” said Matt Hartwig, spokesman for USAA. “This is about our ability to remain competitive.”
Hartwig said the company will continue to offer mortgage loans. USAA will also continue to operate the Real Estate Rewards Network.
USAA notified the affected employees on September 20 and provided them 60 days to search for open jobs within the company or elsewhere. The company said it has already offered about 100 employees another role within its bank’s real estate lending business.
For employees who will not stay in the company, USAA will provide a severance offer as well as job search assistance through outplacement services.
