Number of Layoffs: 1,000
Layoffs As % of Workforce: 8% of mortgage lending unit
Citigroup (C) announced in late September that it would lay off around 1,000 workers in its mortgage business, which tallies about 8% of that unit’s workforce.
That’s a small slice of the overall Citigroup employee pool, but it’s part of clear broader trend. The nation’s largest lenders, including Wells Fargo (WFC), Bank of America (BAC) and JPMorgan Chase (JPM), have also been laying off workers in an effort to cut costs.
The main reason: Fewer people are applying for mortgages and refinancing as interest rates rise from rock-bottom levels. On top of that, increased competition in the sector is also putting a squeeze on profits.