02/16/2006

Associated Press

Washington Mutual Inc., the nation's largest savings and loan, on Wednesday said it is closing 10 loan-processing offices and cutting 2,500 jobs as it scales back to better match current mortgage market demand.

The move will reduce to 16 the number of nationwide offices providing administrative support to its home loan businesses. Work from the shuttered locations will be consolidated at the remaining offices, where increased hiring will partially offset the layoffs, Washington Mutual said.

The Seattle company previously announced plans to cut costs and boost efficiency with measures such as consolidating real estate and moving back-office functions to lower-cost domestic and offshore locations while it expands its presence by opening 150 to 200 new retail banks this year.

Shares of Washington added 17 cents to close at $42.96 on the New York Stock Exchange.