WaMu (Washingon Mutual) cuts 5,400 jobs, warns on EPS

[cthrumatrix]

WaMu cuts 5,400 jobs, warns on EPS
Seattle-based thrift says mortgage business slowing
By David Weidner, CBS.MarketWatch.com
Last Update: 9:44 AM ET Dec. 9, 2003


NEW YORK (CBS.MW) - Washington Mutual said Tuesday it will cut a total of 5,400 jobs in an effort to slash costs amid a slowing mortgage business, and said its 2003 earnings per share will miss Wall Street estimates.

The news, combined with a lower earnings estimate by the company, sent WaMu shares down $2.98, or 6.8 percent, to $40.87

The Seattle-based thrift said it cut 4,500 jobs between August and November and will slash an additional 900 jobs in the coming weeks. The jobs represent about 10 percent of WaMu's (WM: news, chart, profile) workforce.

snip

http://cbs.marketwatch.com/news/story.asp?guid=%7B4409121F%2DD06C%2D45A3%2D861F%2DA9D34CBDD056%7D&siteid=mktw

mortgage business is slowing down....

[R3dD0g]

1. I guess ...

that means my mortgage will be sold again. I'm so sick of changing the account numbers on my home loan.

[Beetwasher]

2. Wow! This is bad!

Really bad...

[qanda]

3. Never fear....

The stock market is poised to cross 10,000 again for the second time in less than one hour. /sarcasm

[jmcgowanjm]

7. Exactly pbl

But look at the great run its had this year!-
Kernan/CNBC

[baldguy]

4. Higher unemployment = a growing economy!

And the jobs we do have pay $7.50/hr so the oligarchs can make more money - and it's higher than minimum wage! We all know that the rich people are the only people that matter.

[akitamata]

16. "...rich people are the only people that matter."

Almost time to start the hunting season. Eat the rich, before they eat your kids. This is not a joke. It is a strategy for the disappearing middle-class who can no longer "put food on their families" (GWBush/professional miserable failure and fascist pig). Hey SS, fuck you!

[hatrack]

5. Mission Accomplished!

When unemployment insurance begins to lapse (on December 21st), we can all remain confident that these numbers won't even cause a blip on the unemployment statistics.

Then we can all just sit back, relax and enjoy the spectacle of the booming Bush economy!

[Fatima]

6. And I am late on the mortgage...

Time to send the check!

Sorry to hear about the cuts. This sucks- right before the holidays too!

But they can always go to work for Walmart (**sarcasm**)!

[Tracer]

8. Layoffs? Not making enough money?

This is surprising, since WaMu recently charged me $60 just to tell me my payoff figure Ñ over the phone.

Maybe they should've charged me $500.

[twilight]

9. Can't stand WM!

Greedy suckers they are indeed. I inherited a small CD a couple of years ago and they wouldn't allow me to take possession of it. They wanted to sell me another one at a much lower rate.

Their forfeiture of a CD has a penalty of 1 year's interest! Glad I got away from these crooks. Who needs them? Not me that is for sure. I hope they die a long painful death myself. :grr:

:dem: :kick:

[Roon]

10. They did it to themselves

I am no expert, but I would suspect WaMu grew way too fast. I live in Colorado and their offices sprouted up EVERYWHERE! Kinda like 7-11s.

[Lydia Leftcoast]

11. They sprang up like mushrooms

in Oregon, too, a few years ago.

[beyurslf]

12. We in the mortgage industry are worried

Mortgage companies (and banks) hired all last year and the first half of this year to meet demand... and now we sit around with nothing to do. I work for Bank of America. They keep sayin our jobs are safe... but when I can sit at work on this site all day I don't feel too safe.

[burythehatchet]

17. AND, their service is abominable

Never, ever, ever, do business with them. You will spend 2 hours every month trying to fix the same problem.

They lost a class action suit over this once before, and they never learned their lesson.

[aquart]

13. This bank showed up in NYC like a fungus.

Suddenly it's renting storefront property on every streetcorner and I'm wondering, where the hell is the money coming from?

It may have almost as many stores as Starbucks and it's eerie.

[twilight]

15. WM = Washington Mutual = Walmart!

:think: :think: :think:

Fungus indeed! :nuke: :D

:dem: :kick:

[Parche]

14. unemployment

Almost every teller at Washington Mutual is rude and obnoxious

Though it is sad that they are laying off people

[UpInArms]

18. the layoff number is now being stated as 7,400 (a 2,000 job loss increase)

http://www.latimes.com/business/la-fi-wamu10dec10,1,1276170.story?coll=la-headlines-business

Home Lender Firing 7,400

Washington Mutual Inc., the second-biggest U.S. mortgage lender, cut its estimate for 2003 earnings Tuesday and said it was firing 7,400 people because of a decline in home borrowing. Shares of the company had their biggest drop in more than two years and dragged down those of other lenders.

<snip>

Chief Financial Officer Thomas Casey said at a New York conference with analysts and investors that the company planned to cut costs by $1 billion in the next six quarters by reducing staff and merging the technology systems of six companies Washington Mutual bought in 2001 and 2002.

Casey said 2,000 home loan staff members, mostly temporary and contract workers, would be cut in addition to 4,500 let go since August. A further 900 administrative and technology employees will lose their jobs, bringing the total reduction to about 12% of the workforce.

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