Mortgage-insurer United Guaranty cut 160 jobs from its Greensboro headquarters and field offices Tuesday, instructing the affected workers to pack up their belongings and warning them against speaking with the media about their former jobs.
United Guaranty Corp. is a unit of troubled insurance company American International Group Inc. United Guaranty reported losses of about $2.5 billion last year. The company recently announced that it was replacing its chief executive officer.
Patrick Danahy, the president of Greensboro Partnership, said the job losses are a big blow to families and the city, but hopes the move will help United Guaranty stay strong and stay in Greensboro.
"Things that happened in the last couple of months ... it's not a surprise," he said. "We all hope the moves they make will make them a viable business going forward and they will remain in Greensboro."
The Greensboro-based mortgage insurer said the cuts represent less than 15 percent of the company's worldwide workforce, which is primarily in North Carolina. The company said it is offering outplacement services and providing a working notice period to ease the transition of responsibilities to remaining employees.
The layoffs are an effort to cut expenses in a slow economy.
"United Guaranty continues to underwrite new loans and is ready to book solid, profitable business, offering high-quality products at competitive rates," said new CEO Eric Martinez in a written statement. "Even so, ongoing and challenging market conditions require this step be taken."
Since 1963, the company has been a strong partner with the city of Greensboro, said April Harris, the executive director of Action Greensboro.
"They were the largest corporate donor for Center City Park, and their employees had volunteered extensively in the community," she said, noting that the layoffs "come at a time when we need strong public-private partnerships."
United Guaranty Corp. is a unit of troubled insurance company American International Group Inc. United Guaranty reported losses of about $2.5 billion last year. The company recently announced that it was replacing its chief executive officer.
Patrick Danahy, the president of Greensboro Partnership, said the job losses are a big blow to families and the city, but hopes the move will help United Guaranty stay strong and stay in Greensboro.
"Things that happened in the last couple of months ... it's not a surprise," he said. "We all hope the moves they make will make them a viable business going forward and they will remain in Greensboro."
The Greensboro-based mortgage insurer said the cuts represent less than 15 percent of the company's worldwide workforce, which is primarily in North Carolina. The company said it is offering outplacement services and providing a working notice period to ease the transition of responsibilities to remaining employees.
The layoffs are an effort to cut expenses in a slow economy.
"United Guaranty continues to underwrite new loans and is ready to book solid, profitable business, offering high-quality products at competitive rates," said new CEO Eric Martinez in a written statement. "Even so, ongoing and challenging market conditions require this step be taken."
Since 1963, the company has been a strong partner with the city of Greensboro, said April Harris, the executive director of Action Greensboro.
"They were the largest corporate donor for Center City Park, and their employees had volunteered extensively in the community," she said, noting that the layoffs "come at a time when we need strong public-private partnerships."
