Countrywide to cut as many as 12,000 jobs
The mortgage lender slashes costs to cope with soaring foreclosures and defaults.
Published September 8, 2007
LOS ANGELES - Struggling lender Countrywide Financial Corp. said Friday it will cut as many as 12,000 jobs as it struggles to deal with challenging conditions in the mortgage industry.
The company said the cuts, amounting to as much as 20 percent of its work force, are needed because it expects new mortgages to fall about 25 percent in 2008 from this year's levels.
The latest cuts followed the elimination earlier this week of about 900 positions, including 225 at its lending division in Tampa, and 500 others last month.
The job cuts are expected to center primarily on the company's production divisions and its general and administrative support areas, Countrywide chief executive Angelo Mozilo said in a letter distributed to employees Friday.
In recent weeks, the company borrowed $11.5 billion and sold a $2 billion stake to Bank of America so it could keep operating its retail banking and mortgage lending businesses.
[Last modified September 7, 2007, 23:53:17]
[an error occurred while processing this directive]