Slowing mortgage production is prompting Citigroup Inc.’s mortgage subsidiary to eliminate more than a thousand jobs. The layoffs are concentrated in Nevada and Texas.
The job cuts are happening at CitiMortgage Inc., according to a statement Monday. While more employees were impacted, most were reassigned to other departments — leaving around 1,010 who are being notified of their impending termination.
Citi said that the mortgage staffing reduction is being made as a result of declining mortgage originations and refinancing.
Positions being eliminated include jobs in sales, fulfillment and underwriting. In addition, some of the impacted employees perform mortgage default functions.
“While difficult, these actions reflect our ongoing efforts to increase operational efficiency, adapt to changes in the marketplace, and position the business for the future,” the statement said.
Approximately 760 of the layoffs are in Las Vegas. Most will take place on Dec. 20, though some default servicing layoffs won’t happen until March 2014.
Another hundred in the Dallas-suburb of Irving will occur by Nov. 22.
The remaining 150 jobs are scattered throughout the country, are predominantly work-from-home positions and are scheduled for November.
Impacted employees will be paid for 60 days beyond their termination dates. In addition, they will receive severance pay.
While further layoffs could occur this year and in 2014, they will be nowhere near the scale of layoffs announced today.
Headcount at CitiMortgage will fall from roughly 13,000 to approximately 12,000 once the layoffs are complete.
“Citi will help impacted employees identify opportunities both inside and outside of the company,” the company statement said. “Impacted employees will be eligible for Citi severance benefits and transition support.”
Word of the layoffs follows a report earlier this month that Citi plans to reduce it mortgage staffing by 2,200 employees by early 2014.
Despite the planned layoffs, Citi is significantly beefing up its purchase financing sales staff in core markets where it has retail branches with retail bank customers and commercial banking.
