Chevy Chase Bank to Cut 200 Jobs

November 21, 2007 No Comments »

Bethesda, Maryland-based Chevy Chase Bank is reducing its 4,000-employee work force by roughly 200 positions and scaling back evening hours at some of its branches, according to Alex Boyle, the bank’s vice chairman.

Boyle said the cutbacks are related to the housing downturn and subsequent drop in demand after years of booming real estate activity. “It’s really just fine tuning,” he said in a statement.

“You know, when you look at the last 20 years,” said Boyle, “the rate of growth of the bank has been so dynamic … we have 285 branches. At some point you would naturally see a saturation in some areas.”

The layoffs will affect employees within the bank’s branches and in its mortgage division and home equity departments, including loan originators and support staff in its Maryland, District of Columbia and Virginia operations.

Boyle noted that some affected employees would be able to transfer to other positions within the company.

Earlier this summer, the bank and mortgage lender ceased the purchase of correspondent loans due to intense market volatility, though it is believed that they recently reopened that channel, and continue to be an active player in the mortgage industry.

The bank also has a wholesale lending division which offers jumbo loans and option arms, among other loan programs.

Check out the latest list of mortgage layoffs, closed lenders and mortgage mergers.

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