Lay Offs at Wescom CU Amid Losses

PASADENA, Calif. – Credit union giant Wescom CU last week said it has eliminated as many as 110 full-time employee positions as it seeks to address financial losses, expected to be as much as $10 million for 2007.
 
The $4 billion credit union, which reported a $6.9 million loss through the first three quarters, is the second large southern California credit union to lay off staff in recent weeks. Last month, USA FCU, which reported a $1.1 million loss for the first nine months of the year, eliminated 30 employees, or 10% of its workforce.
 
Officials at Wescom said earlier the mortgage crisis in Southern California has taken a toll on its members, many of whom have taken out subprime mortgages with other lenders, causing repayment difficulties on their Wescom loans.