The fallout from the mortgage meltdown continued today as ResCap, a division
of GMAC Financial Services, announced that it will be restructuring its mortgage
operations. The restructuring will result in the loss of 25% of its 12,000 person
workforce, or 3,000 jobs total. Rescap has stated that the majority of these
layoffs will occur in the fourth quarter of 2007.
"We deeply respect and value all of our associates. While workforce reductions
are very difficult, we will treat our departing associates with sensitivity
in keeping with our values," said Jim Jones, ResCap chief executive officer.
Read the full press release here.