Ally Financial is beginning job cuts that will impact less than 5% of its workforce, Bloomberg reported Monday.
The workforce reduction isn't limited to a single line of business, and will occur across divisions, said Peter Gilchrist, the company's spokeswoman.
The move comes as Ally, a popular car lender, was said to have tightened underwriting standards in the wake of more-for-longer interest rates, as delinquencies have risen back up to pre-pandemic levels.
Staff affected by the layoffs will be able to apply for openings at the company, he said.
Wolfe Research analyst Bill Carcache downgraded ALLY to Peer Perform from Outperform last month, owing to the belief that higher rates would put upward pressure on the company's funding costs and weigh on its net interest margin.