Finance company GMAC is to axe about 930 jobs in its US motor industry finance business as it restructures amid losses.
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The cuts represent about 15% of the work force in the auto loans business unit, the Associated Press (AP) reported.
GMAC reportedly said it would combine several offices into five regional business centres in the Atlanta, Chicago, Dallas and Pittsburgh areas plus Toronto in Canada. It expects to save about $US175m a year as a result, AP added.
AP noted that GMAC, General Motors’ former finance unit lost $2.33bn last year after the US housing slump and disruptions in the credit and capital markets battered its home mortgage division.
In 2006, GM sold 51% of the business to an investment group led by Cerberus Capital Management, which last year bought a majority stake in GM’s rival Chrysler.
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