(Virginian-Pilot, The (Norfolk, VA) Via Acquire Media NewsEdge) Feb. 13--NORFOLK -- USAA, which has operated a large regional office in Norfolk for almost 20 years, said Thursday that it will move parts of the operation to facilities elsewhere in the country and cut its local work force of 850 by more than half.
The company, a major provider of auto and homeowners insurance to members of the military, military retirees and veterans, said it will shift 475 jobs from Norfolk to USAA offices in San Antonio, Phoenix, Colorado Springs, Colo.; and Tampa, Fla., by the end of September.
Most moves involve employees who handle auto and homeowners insurance policies, said Chris Talley, a spokesman for the San Antonio-based company.
About 400 employees who deal with insurance claims and with USAA's legal staff will remain in the Norfolk area, Tal-ley said. However, these employees will be moved to a leased facility, and the company's office building and 32-acre campus on Northampton Boulevard will be put up for sale, he said. More than 20 claims personnel who work in the field won't be affected by the consolidation.
Over the years, USAA's regional office earned a reputation for being an attractive place to work because of its benefits, including day care services. Employees interviewed outside the office Thursday evening applauded the company's offer to relocate workers to other USAA facilities.
"What company does that? The fact that they are offering that is the most wonderful thing in this economy," said Shantae Daniels, who will continue to work for USAA in the Norfolk area.
Other employees expressed concern about their co-workers. Even those who will remain in Norfolk will be deeply affected by the job cuts, said Stacy Bierma, who was picking up her daughter at USAA's day care facility.
"It's our friends, the people we work with" and have children in day care with her daughter, Bierma said. "I trust they will do everything they can for folks."
USAA said the job consolidations and sale of its Norfolk building were part of a broader effort to cut costs and reduce the amount of its unused real estate. The company also is closing its regional office in Sacramento, Calif., and cutting 625 jobs there. These moves are expected to generate $15 million in annual savings, Talley said.
The level of services provided to members won't be affected by the cutbacks, USAA insisted. The company has 6.8 million members, including tens of thousands in Hampton Roads.
Organized by a group of Army officers in 1922 to provide auto insurance for one another, USAA gradually expanded its mix of services to homeowners and life insurance, banking and investments.
USAA opened a temporary regional office in Norfolk in 1990 and moved three years later to a distinctive building on Northampton Boulevard with more than 340,000 square feet of office space and a nearby parking garage. By 2004, its local work force had grown to 1,300.
Advances in technology, however, reduced USAA's need for office space in recent years, Talley said.
USAA representatives spent Thursday afternoon explaining the company's plans to its employees in Norfolk. Those "in good standing" whose jobs are moving will be eligible for positions at four other USAA regional offices, along with relocation packages, Talley said. The relocation assistance will include helping employees sell their homes and helping employees' spouses find jobs, he said.
"We want these employees to stay with us," Talley said.
Those whose jobs are shifted but who decide not to relocate will be offered severance packages, he said.
"It's sad any time families have to move" or take a severance package, said Michael Quinones, a USAA employee for eight years. "Still, it's better than the alternative."
Also on Thursday, Ronald Racinowski, vice president and general manager of the Norfolk office, informed Norfolk's mayor and area business organizations of the company's plans, Talley said.
"They have been nothing short of an outstanding corporate citizen," said Jack Hornbeck, president and CEO of the Hampton Roads Chamber of Commerce.
Tom Shean, (757) 446-2379, tom.shean@pilotonline.com
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