Ditech Cuts Back

Residential Capital LLC, the home-lending arm of GMAC Financial Services and parent of Ditech.com in Costa Mesa, confirmed today it’s cutting about 3,000 jobs, or roughly 25% of its workforce.
The cuts include 120 jobs at Ditech’s Costa Mesa headquarters. Ditech will have 300 workers left in O.C. after the cuts.
Here’s more from the Wall Street Journal, which reported on the cuts earlier today:
The unit, known as ResCap, is expected to cut about 3,000 of its 12,000 employees, in addition to the 1,000 who were to be cut by the end of this month, as announced in January.
“ResCap has taken aggressive actions to date and will continue to adjust its operations to be more in line with the dramatically changed real-estate finance environment,” spokesman Stephen DuPont wrote in a release. “We are focused on turning around the business and believe ResCap will continue to be a market leader in the mortgage space for the long term.” He declined to comment further.
Like other lenders, ResCap, a former crown jewel of GMAC, has been grappling with the nation’s worst housing downturn in more than a decade.
General Motors Corp. sold a 51% stake in GMAC to a consortium of investors led by Cerberus Capital Management in November. In the sale, GMAC received a common-equity injection of about $1 billion from GM and used the funding to shore up ResCap’s balance sheet.