Sacramento, Norfolk Offices to be closed by USAA
February 16th, 2009
The diversified financial services company USAA, has made it known recently that it will be shutting down its operations and office in Sacramento, California along with other operations that it maintains in Norfolk, Va., (at least in part) and that it is intending to consolidate its operations by combining them with its other United States locations. Those employees who are in good standing and who will be affected by the consolidation are to be offered the opportunity to relocate within another USAA office. The other offices that are available for relocation are situated in Colorado Springs, Colo., San Antonio, Texas, Phoenix, and Tampa, Fla.
Joe Robles, who is the CEO and president of USAA, says that this present consolidation of facilities is because of the affect of real estate capacity and expenses. He also notes that there are currently more than 5,000 vacant seats not required by the company. He points out that USAA places a high value on their employees as well as to very special service that these employees provide to the company’s members. Robles says that his company is in the position to provide a job for every eligible employee that is in good standing with the company. He says that they have already set up a special, relocation program that he describes as being attractive, designed to help retain as many employees as they can.
The date set for completing this project of consolidation as well as the relocation of the company’s employees that are to be affected by the relocation move, is the end of September of this year by which time relocation efforts are expected to be completed. Robles stresses that this move will in no way impact member customer service. At the present time the number of employees in the Sacramento office stands at 625 positions, while there are another 475 positions that are slated to be affected directly by the company’s consolidation within the Norfolk office. For those employees that are not in a position to relocate, generous severance packages are being offered.
The Norfolk claims staff and legal staff of USAA will remain intact. They will be used to support strategic business needs. However, the company will be leasing space for them in the Norfolk area in a yet to be determined location. Field claims personnel living in the Sacramento of Norfolk areas will not be affected by the consolidation. These personnel will continue as they are now, working remotely.
At the same time, the USAA offices in San Antonio, Phoenix, Colorado Springs and Tampa will continue operating as usual, as they integrate their new colleagues from Sacramento and Norfolk. It is expected that between 250 and 1,000 customer service and claims positions will be added at these locations. These positions will be filled mostly by those employees that are being relocated in addition to hiring efforts within the existing local communities. The staff represented in the Sacramento and Norfolk offices are drawn primarily from the company's auto and property insurance operations. Both of these facilities will be sold according to USAA.