Ally Financial will cut jobs, end mortgage originations and consider strategic alternatives for its credit-card business as borrowers have struggled to pay down costly debt.
The Detroit-based company will cut less than 5% of its workforce, an Ally spokesperson said in an email to Bloomberg News. The firm had
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"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," spokesperson Peter Gilchrist said in the email. The cuts aren't specific to one line of business or location, he said, and mortgage originations will stop this quarter.
Ally has reported
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The company has tightened its criteria for who can qualify for an auto loan, expressing optimism that those actions could curtail mounting charge-offs. When lenders reported their third-quarter earnings, Ally was one of the few with such a pessimistic credit outlook.
"We remain confident in our long-term strategy and our ability to deliver compelling returns given the strong underlying trends in our core businesses," Gilchrist said. "We'll continue to be diligent in our expense management going forward."
The Charlotte Observer first
