USAA CEO: Gen Z Workforce Faces Unprecedented Challenges

Young workers are entering a fundamentally different employment landscape than previous generations, according to Juan C Andrade, CEO of financial services provider USAA. The challenges facing Gen Z employees could reshape how organisations approach talent management and workforce planning in the coming years.

In an interview with Fortune, Juan says: "I think, unfortunately, our Gen Zs are not going to be as well off as our boomers and Gen Xers were, for different reasons. You definitely see it among the Gen Z generation, both active duty as well as associate members [and] family."

The convergence of artificial intelligence adoption and economic uncertainty is creating particular pressure on younger professionals. Research from the King's Trust indicates that 55% of jobs currently held by young people are likely to change due to AI, while 10% face the risk of complete displacement.

"There's been a lot of layoffs already across the economy, and that certainly impacts people as well," says Juan.

AI's impact on professional roles

According to Acas, one out of four workers now worries that AI will lead to job losses. This concern extends beyond entry-level positions to professional services and white-collar work traditionally considered secure career paths.

Mustafa Suleyman, CEO of Microsoft AI, predicted in an interview with the Financial Times that the tasks comprising office-based work could be automated in as little as a year and a half. He says that "we're going to have a human-level performance on most, if not all, professional tasks."

Mustafa continued: "White-collar work, where you're sitting down at a computer, either being a lawyer or an accountant or a project manager or a marketing person – most of those tasks will be fully automated by an AI within the next 12 to 18 months."

These predictions reflect a broader trend of AI capabilities expanding into areas previously thought to require uniquely human skills and judgement.

Financial sector workforce reductions

Some organisations are already implementing significant headcount reductions linked to AI investments. Fintech company Block announced in February that it was laying off 40% of its workforce, with CEO Jack Dorsey saying that the access to intelligence tools "have changed what it means to build and run a company".

In a letter to shareholders, Jack says: "A significantly smaller team, using the tools we're building, can do more and do it better. And intelligence tool capabilities are compounding faster every week".

However, research from the University of California Berkeley suggests that remaining employees are taking on broader responsibilities as organisations adopt AI. The study shows that employees were working longer hours and managing more tasks simultaneously, with workers reporting increased pressure to maintain new levels of productivity.

Mark Dixon, CEO of International Workplace Group, has expressed a similar sentiment. When asked in an interview with Fortune about the likelihood of a four day work week resulting from AI developments, he said: "AI will speed up companies' development, so there'll be more work, it'll just be different work. Everyone's having to control their labour costs because all costs have gone up so much, and you can't get any more money from customers, so therefore you have to get more out of people."

Taking control of career progression

Juan believes the path to long-term career success remains fundamentally unchanged despite these challenges. "Nobody cares about your career more than you do," he says. "Other people can help open doors, but you're the one that has to figure out what it is that you want to do with your life. What are you interested in? And don't leave it for luck."

According to Juan, he began to see success by actively investing in his own career. He says: "I just had my head down, working hard…I never expected I'd be CEO of anything. It was just doing my job right, and doing it well, and doors opened because of that."

His advice emphasises personal agency and proactive career management as essential tools for navigating an uncertain employment landscape.

For financial leaders, these workforce dynamics present strategic considerations around talent development, retention and organisational structure as AI capabilities continue to advance.