UPDATE 1-Fidelity National says may cut 10 pct more jobs

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Sept 3 (Reuters) - Fidelity National Financial Inc (FNF.N), which controls one of the largest U.S. title insurers, said it may cut an additional 10 percent of its workforce by the end of 2008.

Fidelity National now has about 9,000 title employees, compared with 19,000 in 2003, a company official said at the Keefe, Bruyette & Woods 2008 Insurance Conference.

In July, Chairman William Foley said the company eliminated more than 1,600 jobs in the second quarter, but that most of the cuts came in June, too late to benefit results.

Fidelity National said it is currently looking at capital allocations for 2009, which includes dividend payouts, to preserve cash.

The company now pays a quarterly dividend of 30 cents a share, 10 times more than its second-quarter earnings of 3 cents a share.

On Aug. 27, Fitch Ratings placed Fidelity National on "negative rating watch" citing "unsustainability" of its shareholders' dividend.

The company, which bought the state of Colorado title insurance operations of Mercury Cos Inc in early August, said it might use excess cash for further acquisitions in the title industry.

Shares of the Jacksonville, Florida-based company closed up 1.34 percent at $15.17 Wednesday on the New York Stock Exchange. (Reporting by Anurag Kotoky in Bangalore; Editing by Vinu Pilakkott)