Countrywide plans to slash up to 12,000 jobs
The mortgage lender also says loan originations will be 25% lower in 2008.
September 7 2007: 5:51 PM EDT
NEW YORK (CNNMoney.com) — Troubled subprime mortgage lender Countrywide Financial Corp. plans to slash as many as 12,000 jobs over the next three months, according to company statement released late Friday.
Countrywide (down $0.27 to $18.21, Charts, Fortune 500) also expects that its loan originations in 2008 will be about 25% lower than this year.
The company says it’s shifting its focus to relatively conservative loans. These would be held as long-term investments in its savings bank unit or sold to Fannie Mae or Freddie Mac, government sponsored entities. Countrywide is also seeking loan insurance from the Federal Housing Administration.
Countrywide cut 500 jobs in August and another 900 jobs Wednesday, mostly from its mortgage production divisions. The company says the new round of cuts may be smaller than expected if the market improves, according to the release