Title insurer First American Corp. said on Tuesday that it expected to reduce personnel by about 1,300 in the third quarter, citing rapidly changing economic conditions.
First American said this is in addition to 600 jobs eliminated in the second quarter. It expects the personnel reductions to generate annualized cost savings of $108 million.
Amid fallout from the U.S. housing downturn, First American on August 2 posted a surprise second-quarter loss as it beefed up reserves to combat rising defaults, foreclosures and fraud.
The Santa Ana, California-based company said at the time that it had added $243.6 million to reserves to cover title policy losses and other claims.
On Tuesday, First American said in a statement: In light of rapidly changing economic conditions, the company continues to evaluate its personnel needs, including its utilization of offshore resources.
(Reporting by Mark McSherry)