Tuesday, July 22, 2008

Wachovia Loses $8.9 Billon, Cuts 6,350 Workers, Dividend

Wachovia today reported a net loss in the second quarter of 2008 of $8.9 billion, or a net loss of $4.20 per share, including a $6.1 billion noncash goodwill impairment charge in commercial-related subsegments reflecting declining market valuations and asset values

Wachovia also plans to cut 6,350 full-time employees and leave 4,400 positions open as part of a plan to cut annual expenses by $1.5 billion by the end of 2009.

The company also will exit from its wholesale mortgage origination business. Wachovia already has stopped offering pick-a-payment loans, and Tuesday, it said some 1,000 workers from the mortgage origination business will move to new jobs helping customers refinance those loans.

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