CoreLogic starts 5% cut in workforce
CoreLogic ($26.70 -0.48%) announced plans to cut 5% of its workforce in the fourth quarter when the company reported third-quarter results earlier this week, and a spokeswoman confirmed Friday that the staff reductions have started.
CoreLogic spokeswoman Alyson Austin said the company doesn't have an exact number of expected cuts, though 50 information technology staffers were laid off at the company's Santa Ana, Calif., headquarters. Layoffs this week included positions at the company's Dallas-Fort Worth area office in Westlake, Texas.
Austin said CoreLogic employs about 5,000 internationally, and the company said in its earnings report that it cut 6% of its staff in the third quarter.
"The company is doing what it needs to rightsize and be more competitive," Austin said.
CoreLogic's losses widened to $107 million in the third quarter from $93 million a year earlier, and it estimated it would cut between $80 million and $100 million in costs by the end of 2012.
Revenue increased 5.5% to $348.4 million in the third quarter from a year ago, though revenue from its business and information department fell 22% to $169.3 million.
The company is also in the process of moving its headquarters to nearby Irvine, Ca., in another cost-saving measure.
"With a more focused set of businesses and an aggressive cost-reduction plan, we believe CoreLogic is positioned for stronger financial results in 2012 and beyond with less dependency on improvement in the mortgage market," CoreLogic CEO Anand Nallathambi said Wednesday.
First American Financial Corp. ($24.80 0.17%), which spun off CoreLogic last year, offered to buy back all or part of the company, according to a recent Securities and Exchange Commission filing.
CoreLogic had not filed Worker Adjustment and Retraining Notification notices in either Texas or California, where it has offices, according to the Texas Workforce Commission and Santa Ana Workforce Investment Board. The WARN Act requires a company to file a notice if it reduces its workforce by 500 or more, or at least one-third of employees for companies between 50 and 499 employees.
Write to Andrew Scoggin.
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