India | UK | US

Countrywide to cut up to 12,000 jobs

NEW YORK (Reuters) - Countrywide Financial Corp <CFC.N>, the largest U.S. mortgage lender, plans to cut 10,000 to 12,000 jobs to cope with weakened housing demand, rising foreclosures, and tightening credit markets.
Posted : Fri, 07 Sep 2007 22:12:07 GMT
Author : Reuters
Category : US (Business)
News Alerts by Email ( click here )
US Business News | Home
NEW YORK (Reuters) - Countrywide Financial Corp , the largest U.S. mortgage lender, plans to cut 10,000 to 12,000 jobs to cope with weakened housing demand, rising foreclosures, and tightening credit markets.

The cuts amount to as much as 20 percent of the lender's workforce, and will be completed over the next three months. Some of the cuts have already been made, Countrywide said.

The reduction is by far the biggest announced in this year's U.S. housing downturn, which has cost tens of thousands of workers their jobs.

Countrywide, based in Calabasas, California, said the cuts would be mainly in mortgage production and in general and administrative support. It said banking, insurance and loan servicing operations would likely not be materially affected.

"This current cycle is certainly the most severe in the contemporary history of our industry," Chief Executive Angelo Mozilo said in a letter to employees.

"During the past two years the growth in home price appreciation has stopped dead in its tracks and in many areas of the country it has turned in the wrong direction," Mozilo said.

"There have also been significant increases in delinquencies and foreclosures among far too many borrowers. More recently the secondary market for jumbo and non-agency conforming loans has become nearly illiquid," he said.

Countrywide shares rose 29 cents to $18.50 in after-hours trading. They had fallen 27 cents during regular Friday trading to $18.21. Through the close, the shares have fallen 57.1 percent this year.

(Reporting by Jonathan Stempel and Christian Plumb)


(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Share/Save/Bookmark

Article : Countrywide to cut up to 12,000 jobs
Print this article
Email this article

Stay Updated
News gadget on your Google homepage
Subscribe to a news feed in Google Reader



Have your Say
Name
Email
Subject
Your Comment

Enter Verification code
 
  

 

 

More US (Business) News click here
Follow The Earth Times
Subscribe to RSS Follow Earth Times on TwitterNews by email
Share/Save/Bookmark

 
 



 
Subscribe to free Earthtimes
News Alerts by Email Click here
For RSS Feeds Click here
or Create your own RSS

Add to Google Toolbar
Breaking News
Press Releases


The Earth Times
News Category

© 2009 www.earthtimes.org, The Earth Times, All Rights Reserved | Privacy Policy
Earth Times accept no responsibility or liability either directly or indirectly for views or opinions expressed in articles or comments.