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| Fannie Mae will layoff hundreds of employees as part of a cost-cutting effort.
The secondary lender expects to reduce operating expenses by $200 million this year, according to a written statement by Fannie spokesman Brian Faith. Thereby, Fannie is reducing its number of contractors and will also be eliminating some full-time positions, as well as focus on other non-personnel expenses. “While determinations are still being made as we undertake this restructuring, we anticipate that the company will have several hundred fewer full-time employees at the end of this year,” the statement said. Because the company will strategically eliminate positions, Fannie spokeswoman Chrissie McHenry did not have a more precise number for how many will be laid off. She said there are currently about 6,400 employees throughout the company, which is headquartered in Washington, D.C., and has five regional offices and other local offices. “Our objective is to bring costs in line following a period of significant increases in overall administrative expenses as the company completed its restatement and made critical investments in financial systems, risk management and internal controls,” Faith said in the statement. Fannie has paid $400 million to the federal government and faces shareholder and other lawsuits relating to the accounting scandal that broke out after regulators began investigating the government-sponsored enterprise when it restated $1.1 billion of its stockholder equity in November 2003 for miscalculating mortgage commitments. |
