Associates First Capital Corp., wielding the ax just one day after completing its $3.9 billion buyout of Avco Financial Services Inc., said Thursday that it would eliminate 400 jobs.
The job cuts, expected in the second quarter, represent 5% of Avco's 8,000-employee U.S. work force. About half of those employees will be offered new jobs. Most of the cuts will come from Avco's headquarters in Costa Mesa, Calif., which will close. "Realistically, it is not efficient to maintain dual corporate headquarters with overlapping functions," said Keith W. Hughes, chairman and chief executive officer of Associates.
Several U.S. offices and three international offices, including Associates' Canadian headquarters in Toronto, also would close. Avco's technology center, also in Costa Mesa, is expected to close before Sept. 30, and Avco's purchasing center in Denver will close before March 31, the company said.
Associates, based in Dallas, agreed in August to buy Avco from Textron Inc. Associates specializes in leasing, commercial finance, and insurance products. Avco, with $8.9 billion of assets, provides real estate, consumer, and commercial loans and insurance.