FCA Plans More Layoffs
LOS ANGELES (AP) _ Financial Corp. of America, which just completed one round of cutbacks aimed at saving about $35 million a year, plans more layoffs before the end of March, the company said Wednesday.
However, FCA spokeswoman Layna Browdy declined to say how large the anticipated layoffs will be except that they will be sizable and will come from the lending, administrative and personnel operations of FCA and its chief subsidiary, Stockton-based American Savings & Loan Association.
″Bill Popejoy (FCA’s chairman) is being very cautious,″ Ms. Browdy said. ″This deals with peoples’ livelihoods.″
FCA is the nation’s largeset savings and loan holding company.
First word of the proposed new cutbacks came in a Los Angeles Herald Examiner interview with Popejoy published Wednesday.
Ms. Browdy said Popejoy was unavailable to elaborate on those comments.
Last October, two months after taking over the helm of FCA and American Savings, Popejoy instituted wide-ranging cost-saving measures.
Those cuts included laying off one-fifth of its 7,500 employees, reducing salaries by up to 20 percent, the sale of five jets, 41 condominium apartments and 475 company cars used by executives and scrapping plans to build a new $45 million corporate office building.
None of FCA’s 122 branches in California were closed as a result of the layoffs that began in October, and none are expected to be shuttered because of the proposed cutbacks, Ms. Browdy said.
She said the new layoffs will occur in the first quarter of this year. FCA’s fourth-quarter financial statement is expected to be released in mid- February.
Last month, Popejoy projected that FCA will show a loss of more than $100 million in its fourth quarter because an independent review found extensive bad loans and the company will probably be forced to double the size of its $97 million loan-loss reserves.