Indymac Bribes Employees to Quit
Rather than embrace massive firings, Indie Mac has begun downsizing its mortgage operations by offering voluntary severance packages. Such packages along with a home equity line of credit may be enough to help some employees survive until they can find another job.
According to an insider:
I’ve been told that the size of the severance package varied based on current salary and how long the employee has been with the company, but all in all they’re said to be quite generous.
I’ve heard that some of the severance packages include compensation for up to a year, possibly longer, as well as extended health benefits.
Apparently the severance packages were extended to operations staff, though it appears they were not offered to members of the sales team (surprise, surprise).
Two weeks ago, IndyMac said it would offer the voluntary severance packages in an effort to shed 1,100 employees, and would follow those attempts with layoffs.
According to IndyMac employees, the lender said it was looking to “right-size”, not downsize its workforce in an attempt to fall in line with current market demand.
In a recent letter to company shareholders, IndyMac Chief Executive Michael W. Perry said he expects the lender to either break even, or lose up to 50 cents a share in the third quarter as loan origination has waned.
While it’s nice to at least get something prior to leaving a company, it’s unfortunate that many who do not leave voluntarily will be laid off as well.
Indymac’s stock has taken a huge beating in recent months as a result of financial hardships, sub prime foreclosures, and a myriad of other bad financial choices.
With loan volume plummeting by up to 50%, the need to cut employees is obvious.
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