FACTBOX-Financial companies cutting jobs
NEW YORK (Reuters) - Banks and financial service companies with banking operations are in the process of cutting tens of thousands of jobs.
Some have said they are reducing staffing to lower their cost structures. Others are doing so because interest rate changes have made it more difficult to profit from lending. Still others are reacting to tightening credit conditions, especially for mortgage lending operations.
Challenger, Gray & Christmas Inc, the consulting firm, said in August the U.S. financial industry has announced 87,962 job cuts this year, 75 percent more than in all of 2006. It said 35,830 of the cuts, or 41 percent, relate to housing market problems.
The following is a selection of U.S. financial companies that have set job cuts this year or are otherwise reducing staffing.
COUNTRYWIDE FINANCIAL CORP
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 work force 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.
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.
INDYMAC BANCORP INC
IndyMac Bancorp Inc, one of the largest independent U.S. mortgage lenders, plans to cut 1,000 jobs as defaults rise and loan volumes decline.
The cuts amount to 10 percent of the work force and will be made over the next few months, as lending volume falls by half and IndyMac emphasizes higher quality loans.
LEHMAN BROTHERS HOLDINGS INC
Lehman Brothers Holdings Inc said it will fire another 850 workers, or about 3 percent of its work force, as it scales back its mortgage lending efforts globally.
Lehman, the fourth-largest investment bank in the United States by market capitalization, said it will trim its U.S. and U.K. home loan operations and close its South Korean mortgage business.
The investment bank had previously said it would fire 1,200 workers as it shuttered its U.S. subprime mortgage lender, following an earlier announcement that it was cutting 400 U.S. subprime jobs.
NATIONAL CITY CORP
National City Corp said it is laying off 1,300 workers and taking $200 million in third-quarter charges and unusual items, before taxes, in its mortgage banking business.
ACCREDITED HOME LENDERS HOLDING CO
Accredit Home Lenders, a subprime lender, said it will cut 1,600 jobs. The San Diego-based company said it will close nearly all of its retail lending branches and support centers, as well as five of its 10 wholesale divisions, effective September 5. Staff will also be laid off in the company's Inzura Settlement Services unit and its headquarters.
BEAR STEARNS COS
Bear Stearns, a Wall Street investment bank said it will cut 240 subprime lending jobs, including 100 at its Encore Credit unit and 140 at its Bear Stearns Residential unit. The New York-based company also said it is closing two operations centers.
CAPITAL ONE FINANCIAL CORP
Capital One, the largest independent credit card issuer, on August 20 said it will eliminate 1,900 jobs and close its GreenPoint Mortgage Inc wholesale lending unit. In June, the McLean, Virginia-based company announced plans to cut 2,000 jobs, or 6 percent of its work force, to help save $700 million annually by 2009.
