Sub-prime heat hits India; IndyMac cuts jobs

Source: Economic Times India

19 Jan, 2008, 0112 hrs IST

NEW DELHI: The sub-prime impact is far from over. One of the largest independent mortgage lenders in the US, IndyMac Bancorp, has decided to cut down staff with its temporary and outsourcing vendors by 27%, mainly in India.

Currently, three service providers in India, Cognizant Technology Solutions, ExlService Holdings and WNS, cater to the ninth-largest American mortgage lender. IndyMac’s move could impact about 400-450 people at the three service providers.

That’s not all. IndyMac CEO Mike Perry, in an email to employees, said another 500-1,000 of the company’s global workforce could be retrenched by June. The lender announced that it’s cutting 2,403 jobs, or 24% of its workforce, to attempt a return to profitability.

The layoffs will save IndyMac an estimated $136 million a year in labour costs. Of the 2,403 job cuts, around 1,880 employees face immediate layoffs. These include 1,440 IndyMac employees and 441 workers at outsourced or temporary vendors located mainly in India, Mr Perry said in the e-mail.



Read more: http://economictimes.indiatimes.com/Sub-prime_heat_hits_India_IndyMac_cuts_jobs/articleshow/2712458.cms

Then our unemployed will have jobs, and therefore income to make purchases - and re-energize the market.

With that said, I'm still shocked people did not see this coming. YEARS ago, I knew this would be a mess - and kept saying so. People I knew told me - Oh no, we're in stable jobs and moving up - we'll have more income, blah blah. Well now what do you have to say about it? And then of course there's the fact that brokers actually made these people think it wouldn't be a problem.

I like your ideas. :thumbsup:

...the assholes who outsourced the jobs to begin with, and people like IndyMac CEO Mike Perry.

Fuck Mike.

Michael W. Perry
Chief Executive Officer
IndyMac Bancorp Inc

The proxy statement for IndyMac Bancorp Inc. uses the new SEC executive compensation rules.

In 2006, Michael W. Perry raked in $3,968,350 in total compensation according to the SEC. However, according to the AFL-CIO's calculation method*, he raked in $2,157,363 in total 2006 compensation.

http://www.aflcio.org/corporatewatch/paywatch/ceou/database.cfm?tkr=IMB&pg=1