WaMu Cuts 1,200 Jobs After Mortgage-Related Losses

Washington Mutual Inc., the biggest U.S. savings and loan, cut 1,200 jobs after losses tied to subprime home mortgages.

The Seattle-based company is eliminating positions in California, Florida, Illinois, Texas and Washington, spokeswoman Darcy Donahoe-Wilmot said today in an interview. The reductions represent 2.7 percent of the lender's 45,883 employees at the end of the first quarter.

Washington Mutual, among the top providers of subprime and adjustable-rate mortgages, racked up $3 billion in losses in the past two quarters, cut its dividend twice and stripped Chief Executive Officer Kerry Killinger of the chairman's position. The company is reducing its home-loan division, while focusing on building its retail business and managing expenses, Donahoe- Wilmot said.

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