After getting a $11.5 billion line of credit from Bank of America, Countrywide announced it will layoff 12,000 employees which is 20% of their workforce. They then announced it will be giving Bank of America a minority stake in the company for another $2 billion dollar cash infusion. Up until this time, Countrywide had been saying they would be expanding their workforce to gain market share from other lenders facing the sub prime crisis so this layoff announcement is a turn of events. Countrywide CEO Angelo Mozilo also predicts this sub prime crisis to send the country into a recession. Let’s just hope Mr. Mozilo is wrong but he does see a lot stuff we common folk don’t see.
Countrywide Plans to Layoff 20% of Workforce
September 9th, 2007 · No Comments