GMAC Financial Services reported today that it would eliminate 3,000 jobs from its Residential Capital mortgage operations due to sharp downturns in the U.S. residential real estate markets and the global dislocation of the mortgage finance and credit markets.
The job cuts will affect about 25% of the company's workforce. Earlier this year, ResCap slashed 2,000 jobs. A spokeswoman for GMAC said that the largest loss in any one city would occur in ResCap's home base of Minneapolis, where 460 out of 1,550 workers will be laid off.
General Motors , which holds a 49% stake in GMAC, is set to close on a loss of 1.8%. GMAC said it will take a restructuring charge between $90 million and $110 million in 2007, including $55 million to $65 million in severance costs and $35 million to $45 million in facility closures.