CitiMortgage Layoffs and Closures

January 24, 2008 Comments Off

Citigroup bank’s CitiMortgage plans to close an operations center in Montana and cut another 100 jobs in Iowa as part of a recent move to consolidate its U.S. residential mortgage business.

The banking giant plans to close a mortgage servicing center in Great Falls, Montana by the end of June, resulting in 80 job losses, the Great Falls Tribune reported today.

The work will be shifted to Citi’s operation centers in St. Louis, Tucson, and Dallas, according to company spokeswoman Janis Tarter.

“We are encouraging our Great Falls employees to look at other positions in other locations with Citi,” said Tarter.

“Employees who do not stay with Citi will receive a severance package and other support, depending on their length of service with the company.”

The Great Falls office had been around for 16 years.

CitiMortgage also announced that it would be cutting 100 jobs in Des Moines in a bid to reduce costs, according to WHOtv.com.

The layoffs will take place at the end of June, the local news station said.

In early January, Citi said it would combine its loan origination, servicing and capital markets activities, resulting in an unspecified number of layoffs.

And two weeks ago, the bank and mortgage lender reported a near $10 billion loss and wrote down roughly $18 billion in subprime-related debt.

It’s assumed that the layoffs and closures will continue over the next several months as the restructuring carries on.

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