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| So far this year, Residential Capital LLC disclosed workforce reductions of 2,000 amid a continued subprime slowdown.
Approximately 1,000 positions will be eliminated throughout the U.S. mortgage-related business and corporate services functions of ResCap by the end of April, the company said in an e-mailed statement to MortgageDaily.com. “ResCap’s decision to re-align its workforce was influenced by current market conditions, including a smaller U.S. residential real estate finance market, the deterioration of the subprime mortgage market, shifts in home prices and appreciation rates, and a challenging interest rate environment,” according to the statement. About one-third of the cuts will be through the elimination of open positions, ResCap said. April’s staff reduction will be another move to reduce costs and increase operating efficiencies. In January, it was announced the Minneapolis-based lender would layoff 800 employees through October and not fill 200 open mortgage job positions, as part of a plan to produce cost savings of $65 million in 2008. Currently, ResCap’s headcount is approximately 13,000. Related: 1000 ResCap Layoffs |
