WDET News
- GMAC To Cut 5,000 Jobs In ResCap Unit
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Sep 3, 2008Automotive & Business - Link to Audio
GMAC Financial Services has announced that it will eliminate as many as five thousand jobs in its mortgage unit. Detroit Public Radio’s Jerome Vaughn has more.
SOQ
The job reductions come in the company’s ResCap unit. The cuts – which total roughly 60 percent of the subsidiary’s workforce – come as a result of the continued downturn in the nation’s mortgage industry.
The company will also close all 200 GMAC Mortgage retail offices in the United States as part of a plan to reduce operating costs and focus on strategic lending services.
Company officials say the workforce reductions and the office closures are needed to position ResCap to withstand difficult market conditions. ResCap lost four-point-three billion dollars last year.
GMAC says workers affected by the job cuts will be notified later this month, while remaining employee reductions will take place by the end of the year.