All Things Recruiting & Employment

Home | Jobs | Free Resume Builder | Recruiting News | Outplacement Services | NYC jobs | Audio jobs

Saturday, November 08, 2008


Boston Jobs Affected By First Marblehead Layoffs

The First Marblehead Corporation announced it has reduced its full-time employee population by approximately 24% in a continued effort to reduce costs. According to a company press release, this represents another phase in the cost reduction plan and it will eliminate Boston jobs, where it is headquartered, as well as a processing center in Medford, Massachusetts.

First Marblehead is in the student loan business, helping “meet the growing demand for private education loans by offering national and regional financial institutions and educational institutions an integrated suite of design, implementation and capital markets services for student loan programs,” notes the company website.

The announcement is the third hit the company has taken this year. According to the Boston Globe, the company eliminated 500 positions – more than half of its workforce – in May. While in August, the company replaced its Chief Executive Officer with its original founder, who had years earlier resigned over questions of excessive spending.

First Marblehead Corporation announced that its total revenues for the first quarter of fiscal 2009 were $84.9 million, down from $380.0 million for the same period last year. The net loss for the first quarter of fiscal 2009 was $92.9 million, a decrease from net income of $168.8 million for the same period last year.

In August 2008, the company received $132.7 million in gross proceeds from the sale of shares of preferred stock to affiliates of GS Capital Partners.

Daniel Meyers, First Marblehead's Chief Executive Officer and President, said, "The illiquidity of the capital markets continues to negatively impact our financial results. We have scaled back expenditures significantly to reduce our operating costs. We are focusing our efforts on our core businesses -- the design, origination, financing and risk management of private student loan products and services. The completion of the GS Capital Partners investment adds to our financial strength and flexibility as the company closed the quarter with $222 million in cash, cash equivalents and investments on the balance sheet."

Meyers added, "Challenging economic times such as these create opportunities that well positioned firms can take advantage of through knowledge, hard work and industry expertise. The strategic realignment and management changes we have undertaken are positioning the company to lead the next product cycle and compete in the newly emerging private student loan marketplace."


<< Home


July 2006   August 2006   September 2006   October 2006   November 2006   December 2006   January 2007   February 2007   March 2007   April 2007   May 2007   June 2007   July 2007   August 2007   September 2007   October 2007   November 2007   December 2007   January 2008   February 2008   March 2008   April 2008   May 2008   June 2008   July 2008   August 2008   September 2008   October 2008   November 2008   December 2008   January 2009   February 2009   March 2009   April 2009   May 2009   June 2009   July 2009   August 2009   September 2009   October 2009   November 2009   December 2009   January 2010   February 2010   March 2010   April 2010   May 2010   June 2010   July 2010   August 2010   September 2010   October 2010   November 2010   December 2010   January 2011   February 2011   March 2011   April 2011   May 2011   June 2011   July 2011   August 2011   September 2011   October 2011   November 2011  

This page is powered by Blogger. Isn't yours?