GMAC to cut over 900 jobs

February 20, 2008 9:10:49 AM PST
The finance company GMAC LLC plans to cut about 930 jobs in its auto finance business as it restructures amid losses. The cuts announced Wednesday represent about 15 percent of the work force in the auto loan business unit.

The company says it will combine several offices into five regional business centers in the Atlanta, Chicago, Dallas, Pittsburgh and Toronto areas. It expects to save about $175 million per year with the moves.

GMAC lost $2.33 billion last year as the housing slump and disruptions in the credit and capital markets battered its home mortgage division.

GMAC is General Motors Corp.'s former finance arm. In 2006, GM sold 51 percent of the business to an investment group led by Cerberus Capital Management LP.