Jones Lang LaSalle


Washington Mutual to cut 2,500 jobs
Bank cuts costs as mortgage market cools
By Alistair Barr, MarketWatch
Last Update: 6:57 PM ET Feb 15, 2006

SAN FRANCISCO (MarketWatch) -- Washington Mutual announced 2,500 job cuts at its home-loan business late Wednesday, another sign of a cooling real-estate market.

The bank, one of the largest mortgage lenders in the U.S., said its network of processing offices that provide administrative support to its home-loan businesses will be reduced to 16 from 26.
The job cuts represent more than 4% of Washington Mutual's total workforce of about 60,000.
After an acquisition spree, Washington Mutual (WM : Washington Mutual Inc
is trying to boost efficiency by reducing the real estate it uses and moving back-office functions to lower-cost domestic and offshore locations.

But the bank also said in a statement on Wednesday that it's cutting costs at its home-loan business to "better match current and anticipated mortgage-market conditions."

Signs that the once-hot housing market is beginning to cool have accumulated this year.

U.S. banks reported weaker demand for mortgages in the past three months, a Federal Reserve survey of senior loan officers found in January.

Homebuilder KB Home (KBH : kb home com
said on Feb. 13 that it's seen a surge in cancellations and a decline in orders during the first two months of fiscal 2006.

Last week, luxury homebuilder Toll Brothers (TOL : Toll Brothers, Inc.
cut its outlook for fiscal 2006 home deliveries for a second time, citing slowing demand. See full story.

Washington Mutual's 2,500 job reductions will be partially offset by new hiring, the lender said. '
The bank also said it will continue to pursue strategies designed to fuel profitable growth, such as last week's announcement of 150 to 200 new retail banking stores in 2006.