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Countrywide May Fire as Many as 12,000 as Mortgage Demand Wanes
Sept. 8 (Bloomberg) -- Countrywide Financial Corp., the biggest U.S. mortgage company, plans to cut its workforce by 10,000 to 12,000 in the largest round of firings since the industry's contraction began last year.
New U.S. home loans probably will drop 25 percent in 2008 from this year's levels, forcing the company to eliminate as much as 20 percent of its staff, Calabasas, California-based Countrywide said in a statement yesterday.
Countrywide's statement said fewer jobs may be lost if markets improve. Mozilo said he's still adding salespeople.
``Events could change, though it's remote, to make things better than we anticipate,'' Mozilo said. ``Hopefully at the end of the day we won't have to cut as many as we've proposed. There's a potential for a refinance boom if rates come down.''
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