Drew Dixon
Massive voluntary corporate buyouts are being offered to employees of Jacksonville-based TIAA Bank and additional workers employed around the world.
The parent company, TIAA, announced they have started to offer buyouts to 75% of all employees who work for the company across Florida and other areas of the United States. There are about 16,500 people employed by TIAA around the world.
While a TIAA statement this week did not specifically blame the staff reductions on the coronavirus pandemic, it eluded to the economic turmoil created by the outbreak.
“As we navigate through these unprecedented times, we are exploring a variety of measures to reduce costs while managing our business and continuing to serve our clients,” the TIAA statement said.
“As part of that process, we have introduced a voluntary separation program for our employees, which is designed to give our people the ability to decide what’s best for them.”
The buyout proposals include 45 to 91 weeks of severance pay, up to 18 months of medical coverage and 100% of bonuses earned in 2019.
TIAA workers have until Aug. 3 to respond to the proposed offers. If employees voluntarily accept the offer, they’ll part ways from the company Nov. 2 if the “separation” packages are approved by managers.
While a majority of TIAA workers have been offered the buyouts, officials with the company say they expect 5% to 7% to actually accept the proposal.
For the Jacksonville area, it’s a stunning development for TIAA Bank which assumed control of former EverBank operations in the First Coast city following a major merger.
The TIAA acquisition of EverBank was completed in 2017 and valued at $2.5 billion. TIAA officials did not provide the number of workers in Jacksonville Wednesday. But when the merger was completed, there were roughly 1,600 EverBank employees in Jacksonville.
Within a year of the merger, TIAA Bank also assumed naming rights to Jacksonville’s municipal stadium named EverBank Field where the Jacksonville Jaguars play. That was changed to TIAA Bank Field in 2018.
