Washington Mutual Cuts Another 1,200 Jobs

Washington Mutual said it eliminated 1,200 jobs nationwide, after accumulating heavy mortgage losses that some analysts have said will keep the largest U.S. savings and loan from turning a profit before 2010.

Washington Mutual's headquarters in Seattle.
Washington Mutual's headquarters in Seattle.

The cuts affect roughly 3 percent of the Seattle-based thrift's employee base.

Washington Mutual has said it ended March with 45,883 employees, down from 49,403 at year end.

In an e-mail, Washington Mutual said it is cutting jobs that support its home lending unit, and is centralizing some support functions.

It said the moves are designed to cut costs, boost efficiency, and help return the company to profitability.

Washington Mutual shares were unchanged at $6.26 in afternoon trading on the New York Stock Exchange.

They have fallen more than 85 percent from their 52-week high of $44.04, set last June 28.