Subprime auto lender Triad Financial Corp., partly owned by Goldman Sachs, plans to cut 124 jobs in California next month, according to a notice filed with that state's department of labor.
Triad of Huntington Beach, California specializes in financing auto loans for people with weak credit. During the first half of the year, Triad's delinquencies increased to 11.2 percent, up from 9.5 percent at the end of 2006, even though it usually sees improved collections during that period, the company said in its quarterly financial statement.
The planned layoffs in California represent nearly 10 percent of the company's total work force of more than 1,300.
The filing with California said the job cuts would take effect Sept. 17. Triad's holding company is owned by Hunter's Glen Ford Ltd., Goldman Sachs and GTCR Golder Rauner LLC.
Triad was not available for comment.
The auto finance company's net income fell 19 percent to $8.1 million in the quarter ended June 30. Part of the decline was because Triad set aside more money for credit losses. That provision increased 15 percent to $60.2 million in the second quarter.
Triad also said in its quarterly financial statement it would take charges of about $7.5 million in the third and fourth quarters related to moving some Huntington Beach-based functions to its facility in North Richland Hills, Texas.
The company also said it planned to designate North Richland Hills as its corporate headquarters.
(Reporting by Tim McLaughlin)