Updated: Facility Closures and Layoff Announcements (Jan. 20-26)
A Weekly Listing of Future Corporate Downsizings
This report is excerpted from Watch List, a weekly column of distressed commercial properties, mortgages and corporate news. (Editors Note: We removed the layoff notice for LendingTree Loans/HLC that appeared here earlier today. According to the company no layoffs are planned.)
IndyMac Bancorp in Pasadena, CA, plans to eliminate 2,403 people, or 24% of its overall workforce, spread throughout the company, including a 27% reduction in staff with its outsourced and temporary vendors, mainly in India. IndyMac’s CEO, Mike Perry, notified employees in a blog posting and after telling employees in October that the bulk of its downsizing was done. "The reality is that since October 12 conditions have gotten worse in our industry.
The private secondary market remains virtually frozen, and the market suffered another setback in November, as the GSEs [government sponsored enterprises] reported large losses and indicated that they are capital-constrained, with the result that they had to further tighten their own guidelines," Perry wrote.
Of the 2,403 impacted individuals, 1,881 are being impacted immediately, including 1,440 regular employees and 441 from our global/non-traditional workforce. 470 are sales staff, who, the company said, will not be able to succeed and earn sufficient commission-based income and will therefore leave IndyMac by March 31. The remaining 52 individuals have already voluntarily resigned since Jan. 1.
As part of the plan, IndyMac has decided to close its regional wholesale mortgage centers in Tampa, FL (One MetroCenter, 4010 W. Boy Scout Blvd., Suite 600), Philadelphia, PA (480 East Germantown Pike, East Norriton, PA); Boston, MA (1 Adams Place at 859 Willard S., Suite 200, Quincy, MA); Columbia, SC (1333 Main St.); and Kansas City, MO (901 E. 104th St., 4th floor) by the end of the first quarter.
Lehman Brothers will substantially reduce its resources and capacity in the U.S. residential mortgage origination in light of the dislocation in the mortgage markets. As a result, it is suspending its wholesale and correspondent lending activities at its Aurora Loan Services subsidiary. The action affects approximately 1,300 employees and will result in the closure of Aurora’s regional operations centers in Lake Forest, CA (25510 and 25520 Commercentre Drive), Sunrise, FL, and Florham Park, NJ. Aurora’s Colorado operations will be consolidated at its Littleton office.
Bank of America Corp. plans to eliminate 650 corporate and investment banking jobs and sell its equity prime brokerage business. The restructuring also includes reduced activities in certain structured products, including collateralized debt obligations and resizing the international platform to emphasize core strengths in debt, cash management, and trading, including rates and foreign exchange.
London-based recording company EMI Group expects to cut between 1,500 and 2,000 in the next six months. The company did not identify how many of those will be in the United States.
This report is excerpted from Watch List, a weekly column of distressed commercial properties, mortgages and corporate news. (Editors Note: We removed the layoff notice for LendingTree Loans/HLC that appeared here earlier today. According to the company no layoffs are planned.)
IndyMac Bancorp in Pasadena, CA, plans to eliminate 2,403 people, or 24% of its overall workforce, spread throughout the company, including a 27% reduction in staff with its outsourced and temporary vendors, mainly in India. IndyMac’s CEO, Mike Perry, notified employees in a blog posting and after telling employees in October that the bulk of its downsizing was done. "The reality is that since October 12 conditions have gotten worse in our industry.
The private secondary market remains virtually frozen, and the market suffered another setback in November, as the GSEs [government sponsored enterprises] reported large losses and indicated that they are capital-constrained, with the result that they had to further tighten their own guidelines," Perry wrote.
Of the 2,403 impacted individuals, 1,881 are being impacted immediately, including 1,440 regular employees and 441 from our global/non-traditional workforce. 470 are sales staff, who, the company said, will not be able to succeed and earn sufficient commission-based income and will therefore leave IndyMac by March 31. The remaining 52 individuals have already voluntarily resigned since Jan. 1.
As part of the plan, IndyMac has decided to close its regional wholesale mortgage centers in Tampa, FL (One MetroCenter, 4010 W. Boy Scout Blvd., Suite 600), Philadelphia, PA (480 East Germantown Pike, East Norriton, PA); Boston, MA (1 Adams Place at 859 Willard S., Suite 200, Quincy, MA); Columbia, SC (1333 Main St.); and Kansas City, MO (901 E. 104th St., 4th floor) by the end of the first quarter.
Lehman Brothers will substantially reduce its resources and capacity in the U.S. residential mortgage origination in light of the dislocation in the mortgage markets. As a result, it is suspending its wholesale and correspondent lending activities at its Aurora Loan Services subsidiary. The action affects approximately 1,300 employees and will result in the closure of Aurora’s regional operations centers in Lake Forest, CA (25510 and 25520 Commercentre Drive), Sunrise, FL, and Florham Park, NJ. Aurora’s Colorado operations will be consolidated at its Littleton office.
Bank of America Corp. plans to eliminate 650 corporate and investment banking jobs and sell its equity prime brokerage business. The restructuring also includes reduced activities in certain structured products, including collateralized debt obligations and resizing the international platform to emphasize core strengths in debt, cash management, and trading, including rates and foreign exchange.
London-based recording company EMI Group expects to cut between 1,500 and 2,000 in the next six months. The company did not identify how many of those will be in the United States.
Labels: Aurora Home Services, Bank of America, California, EMI, Florida, IndyMac Bancorp, layoffs, Lehman, Missouri, New Jersey, Pennsylvania, South Carolina
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