Ally to End Mortgage Originations, Cut Jobs - BBG

Ally Financial (NYSE:ALLY ) plans to exit its mortgage origination business and reduce its workforce due to increasing credit challenges and the impact of higher interest rates, according to a report from Bloomberg on Wednesday. 

The article says that a statement from an Ally spokesperson to Bloomberg News revealed the company will cut less than 5% of its total workforce, which numbered about 11,100 employees at the end of 2023. 

The layoffs will be spread across various departments, though the company did not specify which areas or locations would be affected.

The decision comes as Ally grapples with more expensive borrowing costs for U.S. consumers, particularly in its auto-lending division, where the company has tightened its lending criteria. 

This tightening of loan requirements is aimed at reducing loan charge-offs amid rising credit concerns. In addition to the workforce reductions, Bloomberg said that Ally is also exploring strategic alternatives for its credit card business, a move previously reported in November.

In the email to Bloomberg, Ally spokesperson Peter Gilchrist noted, “As we continue to right-size our company, we made the difficult decision to selectively reduce our workforce in some areas, while continuing to hire in our other areas of our business.” 

Despite the cuts, Ally continues to focus on its other business lines and is taking steps to mitigate the impact of the changing financial landscape.

Ally's decision to exit mortgage originations and review its credit card business underscores the company's efforts to adjust its operations in response to the shifting economic environment. 

 

Source: Investing.com

Останні публікації
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Аналіз ринку Як вплине завтра звіт NFP на курс долара США?