National City Bank layoffs show the subprime crisis is not going away any time soon. The losses have forced the company to cut costs, laying off 2,500 employees, about $125 million in annual personnel expense. National City has also cut back on new non-agency mortgages and home equity products, and transferred $4.4 billion of loans that had been held for sale to its own portfolio. Remaining loans for syndication have been revalued to current market prices.
Please note that $125 million divided by 2500 employees means everyone makes $50,000 per year on the average.
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