<object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/hMenB9Ywh2Q&rel=1"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/hMenB9Ywh2Q&rel=1" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355"></embed></object> IndyMac Laying Off 2, 403 Employees By THE ASSOCIATED PRESS Published: January 15, 2008 http://www.nytimes.com/aponline/business/AP-IndyMac-Layoffs.html?_r=1&oref=slogin Filed at 7:44 p.m. ET LOS ANGELES (AP) -- Mortgage lender IndyMac Bancorp Inc. said Tuesday it will slash its work force by 24 percent, laying off 2,403 employees in a bid to cut costs as it tries to weather the worsening housing slump and sagging demand for home loans. The job cuts include a significant reduction in temporary vendor staffs, mainly in India, the Pasadena-based company said. ''This action is clearly painful, but it is necessary in our drive to return Indymac to profitability soon,'' Mike Perry, IndyMac's chief executive, said in a memo outlining the layoffs to employees. The latest round of layoffs follows a reduction of about 1,600 workers last year through voluntary resignation. The company ended 2007 with a work force of 9,938. The lender said the job cuts were necessary because the company still faces a lack of demand for home loans on the secondary market and tighter access to capital due to the credit crunch that followed the collapse of the subprime mortgage market in August. Perry noted the company has ''a significant capital cushion and strong liquidity'' but needs to keep costs down because it has been unable to sell its prime jumbo home loans on the secondary market and must keep them on its balance sheet. IndyMac said it would take a pre-tax charge to earnings for severance and other expenses related to the work force cuts of about $25 million in the first quarter, among other charges still to be determined. The company expects to save $136 million annually in labor costs, in addition to other savings from vacated office space. ''The bottom line is that these savings are essential in our drive to return IndyMac to profitability soon,'' Perry said. The lender posted a loss of $202.7 million during the third quarter ended Sept. 30. IndyMac -- which primarily originated alt-A loans for customers who cannot provide documentation like traditional, prime borrowers -- has come under increasing pressure like other lenders as delinquencies and defaults among mortgages rose in recent months. Because of the rising delinquencies, investors shied away from purchasing mortgages in the secondary market. Lenders like IndyMac rely on secondary markets to replenish capital to originate new loans. As of Sept. 30, IndyMac had about $366 million in nonperforming loans in its held-for-sale portfolio and another $463 million in other portfolios. Last month, Perry said in a statement that he expected the company to report a loss in the fourth quarter and was hoping it can be profitable again by the second half of next year. IndyMac shares slipped 27 cents, or 5.6 percent, to $4.49 on Tuesday.