Wachovia Announces $8.9 Billion Loss
July 22, 2008
The hits just keep on coming.
Wachovia Corp. announced a whopping second quarter loss of $8.9 billion this morning, with plans to shake up its mortgage unit, slash its dividend payout to shareholders, and cut thousands of jobs.
Job cuts on the way, too.
As part of a plan to cut 2009 expenses by $1.5 billion, Wachovia Corp. today said it will cut 10,750 positions. At the end of June, Wachovia had 119,952 employees, down from 120,378 at the end of March. About 40 percent of the $1.5 billion in savings will come from job cuts. The company will save about $490 million in the second half of this year, but that will be offset by severance and other costs.
You would think that making loans in areas where you have to rely on third parties to get the job done would be a sorry idea. Sucks that those jobs must go, though.