2,400 workers targeted in layoff
PASADENA, Calif. - Mortgage lender IndyMac Bancorp Inc. said Tuesday that it will slash its workforce by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and sagging demand for home loans.
The job cuts include a significant reduction in temporary vendor staffs, mainly in India, the company said.
"This action is clearly painful, but it is necessary in our drive to return IndyMac to profitability soon," Chief Executive Michael Perry said in a memo outlining the layoffs to company employees.
The layoffs follow a reduction of about 1,600 workers last year through voluntary resignations.
Perry said the firm has "a significant capital cushion and strong liquidity" but needs to keep costs down because it has been unable to sell its prime jumbo home loans on the secondary market and must keep them on its balance sheet.
The job cuts include a significant reduction in temporary vendor staffs, mainly in India, the company said.
"This action is clearly painful, but it is necessary in our drive to return IndyMac to profitability soon," Chief Executive Michael Perry said in a memo outlining the layoffs to company employees.
The layoffs follow a reduction of about 1,600 workers last year through voluntary resignations.
Perry said the firm has "a significant capital cushion and strong liquidity" but needs to keep costs down because it has been unable to sell its prime jumbo home loans on the secondary market and must keep them on its balance sheet.
Labels: IndyMac Bancorp, layoffs
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