TIAA Layoffs Updates

Is TIAA Laying Off Employees in 2023 | TIAA Layoffs Updates

TIAA Layoffs – In 2021, TIAA Bank announced the second round of employee layoffs. The second layoff round was commenced on August 2, 2021. 

Later, TIAA made its third announcement of employee layoffs within less than six months. The third wave of layoff rounds commenced as TIAA exited the mortgage business.

The notice was filed on May 28, 2021. It disclosed that the Jacksonville-based bank would be cutting an additional 48 workers. This notice was filed under the Worker Adjustment and Retraining Notification Act.

This sequence of layoffs began with a WARN notice on December 20. The notice indicated the elimination of 59 jobs as TIAA discontinued its mortgage servicing business unit. Subsequently, on April 26, another notice was filed. At that time, it was disclosed that 90 workers would lose their jobs. Besides, the bank terminated its home lending business.

In April, it was noted that PNC National Bank would offer positions to over 200 TIAA employees as TIAA took charge of the home lending operations. However, some employees faced permanent job loss.

Although TIAA is headquartered at 501 Riverside Avenue, the layoffs impacted workers situated in the TIAA Bank Center in Downtown Jacksonville.

The layoffs were scheduled to commence on August 2. Back in October, TIAA reported having 1,431 employees in Jacksonville. The affected employees had already received notification prior to layoffs. So they were known about the impending layoffs, which were scheduled to occur over 14 days.

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TIAA Layoffs 2020

According to a former employee, In 2020, TIAA underwent a second round of layoffs in its OCIO business. OCIO stands for outsourced chief investment officer. 

In November 2019, TIAA announced the shutdown of its OCIO unit. That unit was responsible for managing approximately $3.2 billion in assets for 7 clients. This closure was planned to occur in phases.

The initial wave of layoffs started in Jan 2020. In the first layoff round, sales personnel and the support team were affected. 

About TIAA

TIAA stands for “The Teachers Insurance and Annuity Association of America.” TIAA Bank, a part of TIAA, is a versatile American financial services organization. It was founded by Andrew Carnegie in 1918. Its headquarters is in Jacksonville, Florida. Carnegie was a renowned Scottish-American industrialist and philanthropist. Carnegie is known for their iconic contributions, like Carnegie Hall and funding numerous public libraries. These contributions played a pivotal role in its creation. TIAA has a rich history and is associated with Carnegie’s legacy.

Banking, Mortgages, and Investments 

In June 2018, TIAA Bank was formed through the merger of TIAA Direct. It was TIAA’s former banking division and EverBank. This transformation followed TIAA’s acquisition of EverBank in July 2017. The institution adopted the name TIAA Bank. However, in 2023, the organization announced to revert to its previous name, EverBank. On August 1, 2023, TIAA finalized the sale of TIAA Bank to a consortium of investors. Following this transaction, the financial company resumed its former identity as EverBank.

Is TIAA Bank Closing In 2023?

TIAA has executed a definitive agreement to sell TIAA Bank. They sell it to new investors with extensive financial services experience. This move was taken to refocus on its retirement business. It also refocused on Nuveen, its asset management arm. It is noted that TIAA will maintain a non-controlling ownership stake in the bank. However, specific transaction terms are still not clear.

According to the agreement, the new ownership will acquire all of the bank’s current assets. Not only assets but the business lines also. The exception is TIAA Trust, currently part of TIAA Bank. But closely aligned with the wealth business, which complements TIAA’s retirement organization and mission. TIAA focuses on applying for a new, separate national trust bank charter so that it can make TIAA Trust a subsidiary of TIAA.

It is believed that after the transaction’s completion. TIAA and Nuveen will maintain ongoing business relationships with the bank. TIAA’s Chief Operating Officer expressed confidence in the bank’s future growth and success. He emphasized that this strategic move was made from a position of strength.

The transaction is anticipated to close in 2023 as it follows final regulatory approvals and the satisfaction of closing conditions. TIAA Bank’s headquarters and primary operations will remain in Jacksonville, FL. Then, it will operate under a new name, to be announced upon closing.

Both TIAA and the new ownership forecast a seamless transition. The transition in terms of TIAA Bank’s consumer and commercial clients. It is believed that there are no expected alterations to the bank’s products and services. 

Importantly, the transaction will have no impact on TIAA retirement accounts. The CEO of TIAA Bank expressed enthusiasm for the opportunities ahead. He added, “TIAA promised to offer remarkable client service and innovation in the future.”

What Is Going On With TIAA?

TIAA has achieved a major milestone in its strategic plan as it sells TIAA Bank to private investors with strong financial services experience. The bank will now operate independently as EverBank, N.A., under a new national bank charter. It focuses on consumer and commercial banking growth and innovation across the country.

Most of the bank’s assets and business lines were acquired by the new investors. However, they did not acquire the trust business, which remains with TIAA. It operates as TIAA Trust, N.A., under a new national trust bank charter. TIAA Trust plays an important role in TIAA’s wealth management business as it complements its retirement mission. TIAA still holds a non-controlling stake in EverBank.

It is reported that TIAA and its asset manager, Nuveen, will maintain business relationships with EverBank. Consequently, this sale has no impact on TIAA retirement accounts. Proceeds from the sale were returned to TIAA’s General Account, managed for the benefit of its retirement clients.

For bank clients, there will be no changes to their accounts. Besides, the services will not be impacted.

TIAA’s Chief Operating Officer, President of TIAA Wealth Management, and a director on EverBank’s board said. “The close of the bank sale marks an important execution milestone. It will pursue our strategic focus on providing a secure retirement for our millions of clients.”

EverBank is now an independent bank. It focuses on expanding and innovating its services for consumers and businesses nationwide. Greg Seibly is the new CEO, and David DePillo is the bank’s President.

The investors behind EverBank’s transformation include: 

  • Stone Point Capital
  • Warburg Pincus
  • Reverence Capital Partners
  • Sixth Street
  • Bayview Asset Management

Is TIAA A Good Company?

TIAA’s overall rating is 4.0 out of 5, based on over 3,402 employees. Impressively, 78% of these employees would recommend TIAA as a good place to work. Additionally, 67% of respondents have a favorable outlook for the company’s future. TIAA’s positive workplace reputation and outlook suggest it continues to be an attractive and promising employer for many. 

The bank’s headquarters remain in Jacksonville, Florida.

J.P. Morgan Securities LLC played a crucial role as TIAA’s exclusive financial advisor. Davis Polk & Wardwell LLP provided legal counsel to TIAA. Jefferies LLC led the financial advisory efforts, with Goldman Sachs & Co. LLC. Wachtell Lipton Rosen serves as a financial advisor. Katz serves as the legal counsel to the new investor. Cleary Gottlieb Steen & Hamilton LLP handled legal matters for Sixth Street. Simpson Thacher & Bartlett LLP represented Bayview Asset Management, LLC.

What Is The Future Of TIAA Bank?

TIAA Bank is embracing a fresh beginning as EverBank. It focused on marking a legacy of decades of strong performance and client service innovation, with a renewed focus on core retirement, wealth management, and asset management services. EverBank is providing a financial advantage to its consumer and commercial clients.

Steve Fischer, President and CEO of TIAA Bank, stated. “The EverBank brand has always showed forward-looking optimism, confidence, and trust. These align with the bank’s commitment to exceptional service and valuable products for clients’ success.”

In November 2022, TIAA announced that it would sell TIAA Bank to private investors with significant financial services experience. This transaction paves the way for the bank to start on an independent journey. On the other hand, TIAA retains a minority stake and continues as a business partner.

The bank sale was set to close in 2023, marking the official transition to EverBank. The best part is that the name change will not affect client accounts. The bank will provide a wide range of services to consumers nationwide. Not only consumers but also provide services to commercial clients across the country.

Who Are TIAA Competitors?

TIAA has counted as one of DiversityInc’s 2023 Top 50 Companies. It has secured a prominent 8th-place ranking. This acknowledgment underscores the company’s commitment to diversity and inclusion in its workplace.

However, TIAA operates in a competitive landscape, facing numerous rivals. Some of its tough competitors include: 

Charles Schwab, Franklin Templeton, Voya Financial, Fidelity Investments, Vanguard, and Empower Retirement. 

These companies pose challenges in the financial services sector. Besides, they drive TIAA to strive for excellence continually. These companies also focus on innovation to maintain their competitive edge.


In conclusion, TIAA’s layoffs have undoubtedly impacted its workforce. Moreover, TIAA underwent many changes, and these changes are necessary as the company shifted its focus on its core retirement and asset management businesses. 

The sale of TIAA Bank aligns with its long-term goals. TIAA remains committed to its retirement clients as it retains a non-controlling stake in the bank. In order to maintain ongoing business relationships. These decisions were not easy to make. But necessary to ensure the company’s future growth and success. In truth, layoffs are always challenging. Still, they enable TIAA to adapt and thrive in a competitive financial landscape.

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