Industry News

Announcements of mortgage layoffs nearing 70,000

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Mortgage and subprime lenders have announced nearly 70,000 layoffs in the first three quarters of 2007, according to outplacement consulting firm Challenger, Gray & Christmas Inc., which tracks company announcements of job cuts. That's a more than five-fold increase from the 12,874 announced job losses in mortgage lending tallied by Challenger in all of 2006. "The heaviest job cutting has occurred over the last two months as the bottom suddenly fell out from the mortgage and subprime markets," said John Challenger, the company's chief executive officer, in a statement accompanying today's release of the latest numbers. "The dominos are likely to keep toppling as home values fall and foreclosures continue to climb," Challenger said. "Even if the worst of the crisis is over, as some are saying, we could continue to see heavy job cuts in the financial sector through the end of the year. Additionally, we are seeing housing-related job cuts spread to other industries such a...