GMAC to Close Offices, Cut ResCap Jobs

GMAC Financial Services will close 200 GMAC Mortgage retail offices and cut 5,000 Residential Capital employees, or about 60% of its work force, in a bid to cope with the downturn in the credit and mortgage markets.

The company is also considering its options for the GMAC Home Services business and the noncore servicing operation.

"While these actions are extremely difficult, they are necessary to position ResCap to withstand this challenging environment," said ResCap chairman and CEO Tom Marano. "Conditions in the mortgage and credit markets have not abated and, therefore, we need to respond aggressively by further reducing both operating costs and business risk." ...