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Countrywide Will Slash up to 12,000 Jobs

By Polly Davis Doig,  Newser Staff

Posted Sep 7, 2007 6:31 PM CDT
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(Newser) – Troubled mortgage lender Countrywide announced today that it would cut up to 12,000 jobs–or some 20% of its total workforce–over the next three months. The Wall Street Journal reports that, as the subprime debacle rocks the housing market and the lending industry, Countrywide expects to issue 25% fewer loans this year.

Although allowing for the possibility of fewer cuts if the market improves, Countrywide execs said the current atmosphere was "certainly the most severe in the contemporary history of our industry." The company is focusing on lower-risk loans and on reducing costs.

An employee of Countrywide walks into the Nortirdge branch in Los Angeles, Calif., Tuesday Aug. 22, 2007. Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment in the company Wednesday as the nation's largest mortgage lender tries to weather a credit crunch that's rocked Wall Street...
An employee of Countrywide walks into the Nortirdge branch in Los Angeles, Calif., Tuesday Aug. 22, 2007. Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment in the company...   (Associated Press)
An employee of Countrywide Financial helps customers at the Northridge branch of Los Angeles, Calif., Tuesday Aug. 22, 2007. Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment in the company Wednesday as the nation's largest mortgage lender tries to weather a credit crunch that's rocked...
An employee of Countrywide Financial helps customers at the Northridge branch of Los Angeles, Calif., Tuesday Aug. 22, 2007. Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment...   (Associated Press)
The Countrywide Banking and Home Loans office in Glendale, Calif., is seen in this April 26, 2007 file photo . Countrywide Financial Corp. said Monday, Aug. 6, 2007 it has access to $46.2 billion in cash, credit lines and other investments, a move aimed at reassuring nervous investors the nation's...
The Countrywide Banking and Home Loans office in Glendale, Calif., is seen in this April 26, 2007 file photo . Countrywide Financial Corp. said Monday, Aug. 6, 2007 it has access to $46.2 billion in...   (Associated Press)
ywide Financial Corp., recently described the current real estate slump as the worst since the Depression ended nearly 70 years ago. (AP Photo/Damian Dovarganes, file)
ywide Financial Corp., recently described the current real estate slump as the worst since the Depression ended nearly 70 years ago. (AP Photo/Damian Dovarganes, file)   (Associated Press)
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Countrywide's statement on layoffs
Wall Street Journal

Full text of CEO's statement to employees
Wall Street Journal

US • Money

 
layoffs • subprime mortgages • loans • home loans • Countrywide • subprime crisis

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