China Financial Daily

GMAC layoffs: GMAC to lay off more than 550 people and close three offices
According to foreign media reported yesterday, General Motors financial services company (GMAC) plans to cut about 554 jobs and close its three offices. The auto and housing lender’s stake is currently held by the U.S. federal government is now trying to reduce loan losses.

Financial services company General Motors spokesman Jina Pu Koloa (Gina Proia), said the company’s mortgage business Residential Capital LLC in Costa Mesa, California (Costa Mesa) and the Northern California offices in Charlotte, Staff have been informed of plans to cut 313 jobs, which Charlotte office will be closed, Costa Mesa office will retain about 30 employees.

Pu Luoya also said GM’s auto loans financial services companies in the service sector Semperian Charlotte, and Knoxville, Tennessee (Knoxville) offices also will be closed, the two offices 241 employees have all been cut.

General Motors financial services company will announce Thursday the fourth quarter of fiscal 2009 and full year earnings. Analysts expect the company’s 2009 net loss of more than 10 billion U.S. dollars, mainly due to Residential Capital division increase in mortgage defaults. As the sector in the recent financial crisis and economic recession suffered a heavy loss of reason, General Motors chief executive of financial services companies Michael Carpenter (Michael Carpenter) is facing a difficult and lead this company back to profitability dilemma.

Late last year, the U.S. Treasury Department announced that General Motors financial services companies to provide a total of 3.8 billion U.S. dollars in the third round of aid. General Motors financial services company said at the time, the company is looking at the Residential Capital department’s “strategic choice” in the sector among the top ten U.S. providers of home loans out, was also the sub-prime mortgage market, the largest market practitioners one.

All along, the General Motors financial services company’s investors are pressuring the company to demand an end to the Residential Capital department to provide support. Pu Luoya said that the company announces quarterly earnings before that, she refused on the future problems of the sector for comment.

General Motors financial services company’s mortgage lending sector Ditech Networks founder Paul Wyndham (Paul Reddam), said: “Seeing this happen is very disappointing. When I left the Ditech, the company has 800 employees, As far as I know, these employees in subsequent years to grow well. “Founded in 1995 reedham Ditech, 1999 years will sell to the General Motors financial services companies.

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