Underscoring the depth and breadth of the current housing slump, the First American Corporation said today that it expects to cut 1,300 jobs in the third quarter of 2007. The current job cuts come on top of an additional 600 layoffs during the second quarter, the company said:
The personnel reductions in the second and third quarters of 2007 are expected to generate annualized cost savings of $108 million. Of these personnel reductions, 1,400 FTEs will be in the title insurance and services segment, which is expected to generate annualized cost savings of $66 million. The company also expects to curtail or eliminate certain perquisites and executive benefits in the third quarter, resulting in annualized cost savings of $16 million, including $12 million in the title insurance and services segment. In light of rapidly changing economic conditions the company continues to evaluate its personnel needs, including its utilization of offshore resources.
My best to those affected -- I know plenty of people that work at FirstAm, and I also know that plenty of the company's employees read this blog each and every day.