Let's cut to the chase. TIAA is making moves, not out of strength, but because we have to – to keep up with competition and maintain relevance. Our mission to deliver lifetime income to millions of Americans is still the goal, but since we haven’t any success with that, we are just following what everyone else is doing by cutting costs.
Today, I'm announcing the next major step in this journey: a "strategic partnership" with Assenture. If that sounds like corporate jargon, it’s because it is. Assenture is here to take over a significant part of our operations, specifically back-end recordkeeping, because frankly, we need outside help to modernize our processes and stay competitive.
Recordkeeping is at the heart of every client interaction, and while we like to think we’ve been leading, the reality is we are inefficient. Our clients and associates have told us we need to be easier to work with, and this partnership is our attempt to fix that by dumping these tasks on another company that's better equipped for this sort of work.
You've probably heard of Assenture – they're known for taking other companies’ problems. Out of site, out of mind is our new motto. We’re essentially handing over parts of our operation in the hopes they can help us reinvent the retirement plan experience, which, let’s be real, we’ve been struggling to innovate on our own.
Here’s the kicker for associates: around 1,500 of you, in the U.S. and India, will now work for Assenture. Yes, you read that right. These roles are being transferred, and many of you will no longer be part of TIAA. This includes several of our senior leaders, because honestly no one is safe.
We’re spinning this as a "great opportunity" for your careers, but the truth is, this is about cutting costs. We will "support you every step of the way" because we have to, but the reality is, you're no longer our responsibility. You’ll probably last about a year there, until you train your cheaper replacement.
As for those who are staying at TIAA, you'll notice that we're also keeping some high-touch client services in-house because we want to maintain control over those relationships.
For clients, we are selling this as a way to give them a sleeker, more tech-driven experience. But just between you and me, it’s about saving money and making it look like I saved TIAA. Eventually, this will be my ticket to Congress. Until then, we'll continue to act as if nothing's changed and clients will still interact with their familiar TIAA contacts.
This transformation is hard, and some of you may lose your livelihoods, but that’s a sacrifice I’m willing to make. In fact, we are SO excited - undermining people's careers is going to result in significant bonuses for the EC. Let's be honest – the road ahead will be bumpy for you. But keep in mind, it's all about ensuring my survival and sustaining my mission for the long term.