Job Cuts Reach 80,000

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Previously, Morgan reported that the infamous Mortgage Implode-O-Meter reached the 200 mark! The saying,

Another one bites the dust!

seems to be the norm these days.

Well, Inman News reported earlier today that the number of job cuts in the mortgage lending profession has reached a staggering 81,681 year-to-date; more than six times the total of last year’s number when it was at 12,874.

Inman further went on to say:

“We probably have not seen the last of financial job cuts tied to the housing slump and subsequent collapse in the credit markets,” said the firm’s chief executive officer, John Challenger, in a statement. “In fact, many analysts are waiting for a major announcement from Citigroup in the coming weeks that some say could impact as many as 45,000 jobs.?

In real estate — where many layoffs are not publicly disclosed — 3,275 layoffs have been announced for the year to date, Challenger reported…

?It could be several months before we truly know the ultimate result of the housing slump and the credit upheaval on workforce levels,” Challenger said. “It is not unusual to see a spike in year-end job cutting as companies try to meet earnings goals and make payroll adjustments in light of next year?s budget, so a December increase in job cuts is a significant possibility.”

In Real Estate, a Realtor colleague of mine has reported instances where entire brokerages have packed up and exited the industry without a moments notice or notification to their current listings. You would think you could at least inform the client or pass the referral to another Realtor! What ever happened to professionalism and world class service? Maybe their departure is warranted and those that remain are the ones who merit the business but I can’t help but feel for the client who is sitting there for their home to sell.

And as for the year-end job cuts, a friend of mine asked:

How do you feel about these companies closing down and/or laying people off?

Unfortunately, companies care less about what is “fair” and more about earnings and their shareholders. If they can increase their earnings by downsizing, “so be it” seems to be the general sentiment. It’s unfortunate but that’s how it works. Did you know that Merrill Lynch’s ex-CEO Stan O’Neal departed with a hefty $160 Million dollar retirement package. Fair? Hardly! When First Magnus shut down during this year’s CAMB Convention, most A/E’s got an email farewell at most.

Further from Inman:

?Ironically, while the financial sector has been under fire in recent months, CEO departures have fallen, demonstrating how insulated these executives remain from the credit crisis that has resulted in thousands of job cuts since August,” Challenger said.