Out of the Gate: WaMu falls after job cuts
Friday June 20, 10:35 am ET
WaMu shares slip at market open after bank announces 1,200 layoffs, or 2.6 pct of work force
NEW YORK (AP) -- Shares of Washington Mutual Inc. declined at market open Friday after the nation's No. 1 savings and loan said it cut about 1,200 jobs, or roughly 2.6 percent of its work force.
The stock lost 20 cents, or 3.2 percent, to $6.15 in morning trading.
The beleaguered Seattle-based bank announced the cuts late Thursday as part of a plan to become profitable again. It said they were made in three areas: home loans, jobs not tied to "mission-critical activities," and positions lost as the company centralizes support functions.
The layoffs follow an earlier, more severe round of cuts. In December, the bank let go of 3,100 employees and closed down its subprime mortgage business and closed home loan centers.
Shares of WaMu have eroded at a rapid rate since the subprime mortgage crisis began unfolding. The stock has lost more than 85 percent of its value from a 52-week high of $44.04 set a year ago.
Before Thursday's cuts, WaMu had 45,883 employees.
Friday June 20, 10:35 am ET
WaMu shares slip at market open after bank announces 1,200 layoffs, or 2.6 pct of work force
NEW YORK (AP) -- Shares of Washington Mutual Inc. declined at market open Friday after the nation's No. 1 savings and loan said it cut about 1,200 jobs, or roughly 2.6 percent of its work force.
The stock lost 20 cents, or 3.2 percent, to $6.15 in morning trading.
The beleaguered Seattle-based bank announced the cuts late Thursday as part of a plan to become profitable again. It said they were made in three areas: home loans, jobs not tied to "mission-critical activities," and positions lost as the company centralizes support functions.
The layoffs follow an earlier, more severe round of cuts. In December, the bank let go of 3,100 employees and closed down its subprime mortgage business and closed home loan centers.
Shares of WaMu have eroded at a rapid rate since the subprime mortgage crisis began unfolding. The stock has lost more than 85 percent of its value from a 52-week high of $44.04 set a year ago.
Before Thursday's cuts, WaMu had 45,883 employees.
