Fifty employees will be laid off from a San Antonio data processing center, as Alliance Data Systems plans to close the processing office and outsource its job functions to an outside vendor.

Alliance Data Systems, an Ohio-based provider of data-driven marketing, loyalty, and payment systems, announced the layoffs in a notice filed with the Texas Workforce Commission.

The notice said the layoffs are expected to begin in April and be concluded by the end of May. The San Antonio credit data processing center, one of the offices at the company’s location at 6550 N. Loop 1604 East, will close permanently on June 1.

The notice said none of the workers is represented by a union.

The company said in an email that the layoffs are part of a “modernization” effort and that the job functions were transferred to an outside vendor. It did not give specifics about the vendor.

“With considerably more consumers opting to use digital technology to bank and make payments, the need for traditional paper remittance processing has precipitously declined,” the statement read, which called the terminations “difficult but necessary.”

The Ohio company raked in $1.05 billion in revenue during 2020 – down from $1.4 billion in 2019 – according to filings with the U.S. Securities and Exchange Commission. Alliance Data Systems reported net income of $133 million in 2020, improving on a $107 million net loss the company endured in 2019.

The figures are the latest in what has been a steady decline for the company’s net income, which had previously been as high as $605 million in 2015 and $517 million in 2016.

In 2017, the company expanded its footprint in San Antonio, hiring 150 new associates for its local call center, which hosted the credit data processing center.

Waylon Cunningham

Waylon Cunningham

Waylon Cunningham writes about business and technology. Contact him at waylon@sareport.org.