USAA Closing Sacramento, Norfolk Offices

February 13, 2009

USAA, a diversified financial services company, announced it will close its Sacramento, Calif., operations and part of its Norfolk, Va., operations, consolidating operations into other U.S. locations. Employees in good standing affected by the consolidation will be offered relocation to another USAA office in San Antonio, Texas, Phoenix, Colorado Springs, Colo., or Tampa, Fla.

“This consolidation of facilities is driven by real estate capacity and expenses,” said USAA President and CEO Joe Robles, noting the company currently has more than 5,000 vacant seats not needed. “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.

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. The Sacramento and Norfolk offices primarily employ staff from the company’s auto and property insurance operations. USAA plans to sell both facilities.

Source: USAA

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