GMAC-RFC cuts 280 jobs

GMAC-RFC has revealed that is set to cut its workforce by 280 staff as a result of the continued market downturn.

The reduction in jobs is aimed at reducing its cost base which it says is essential for it to compete and to secure a strong position for the future.

The UK lender cut 200 jobs in October 2007 and a further 66 jobs went as a result of the closure of its direct to consumer arm High Street Home Loans. This reduced staff head count from around 900 to around 600.

The latest jobs cull at GMAC-RFC could bring staff levels down to around 350 to 400.

Simon Knight, chief executive officer of GMAC-RFC, says: “Liquidity available for mortgages has continued to diminish in the UK market into 2008.

“The reduction in our workforce is a direct response to current market conditions, and reflects our expectation that these conditions will prevail for some considerable time.

“In a much smaller market, with less liquidity generally, it is sadly necessary to take this step.

“We are committed to ensuring that affected employees are fully supported during this process.”