WaMu Plans to Eliminate 3,000 JobsApril 9, 2008; Page C2
SEATTLE -- Washington Mutual Inc., which raised $7 billion from the sale of new shares to private-equity firm TPG Inc. and others, said mortgage problems are forcing it to eliminate 3,000 jobs.
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The savings-and-loan also said it expects to report a $1.1 billion first-quarter loss, give TPG two seats on its board and slash its dividend to a penny a share from 15 cents a share.
It has closed 186 home-loan centers nationwide and on Monday notified 3,000 employees that their jobs will be eliminated in the near term.
The sale and a dividend reduction are part of an effort to help inflate capital ratios at the thrift. Chairman Kerry Killinger said the steps "will position us for a return to profitability as these elevated credit costs subside.
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