PacWest Bancorp in Los Angeles plans to lay off 200 employees at a unit that lends to real estate investors.
The $41.2 billion-asset company disclosed in a regulatory filing that the cuts are part of its previously announced plan to restructure Civic Financial Services in Redondo Beach, Calif.
The restructuring plan includes reducing the number of loan products and lower loan growth in 2023 compared to a year earlier. The management of most Civic functions have been transferred to company executives.
The layoffs are expected to result in $30 million to $40 million of annualized savings. The company recorded a $29 million goodwill impairment charge in the fourth quarter.
PacWest recently said that Civic’s loan production fell by 14% in the fourth quarter from a quarter earlier, to $713 million. Civic had $3.3 billion of outstanding loans on Dec. 31.