GMAC to combine offices and cut 930 jobs
GMAC to combine offices and cut 930 jobs
DETROIT (AP) — GMAC LLC plans to combine 20 U.S. and Canadian offices into five regional centers and cut about 930 jobs in its auto finance business to cut expenses in the wake of tightening credit markets and heavy losses last year.
The job cuts will occur by the end of the year and represent about 15 percent of the work force in the auto loan business unit.
The company, which was once the finance arm of General Motors Corp., said the five regional business centers will be in the Atlanta, Chicago, Dallas, Pittsburgh and Toronto areas.
GMAC expects to save about $175 million per year, but will have to spend $65 million to $85 million this year for employee severance and office-closing expenses.