Global financial storm hits Australian jobs

Published: October 30, 2008 - 08:08 PM

The global economic crisis is causing financial stress to many

By Lesley Coombes

GE Money, one of Australia’s biggest funders of non-bank loans for housing and cars will axe 335 jobs, The Sydney Morning Herald reported.

The company announced last Friday that due to increasing funding costs, it will no longer offer home loans through third parties and will cease its motor finance and small business finance in Australia and New Zealand.

In a statement, GE Money said, “This is a result of the extreme volatility and greatly increasing cost of funds on the global and local wholesale markets.”

Victoria will be the hardest hit of the states with 136 staff out of work and NSW following with a further 78 workers to be laid off.

110 GE Money workers will leave in the coming four weeks with the remaining 225 to leave within the next 12 months.

In its downsize, GE Money reassures customers that its retail store finance, personal loans, credit cards and insurance businesses will not be affected.

Mike Cutter, Chief Executive of GE Money Australia and New Zealand blames the “unprecedented conditions” on the global credit market for the company’s job cuts.

“This was a very difficult decision to take. However, we will now be able to better focus on those parts of the business that are our core strengths and in which we have scale,'' he said.

In this global economic storm, it is becoming increasingly important for Australians to control costs.

This is especially true for home owners and prospective home buyers looking for affordable mortgages in such an unpredictable economy. With the shrinking loan market and impending global recession, it is imperative for households to organize their finances to stay ahead.

In an effort to help households manage spending, David Power of Shoparound.com.au encourages Victorians to think of utilities, such as gas and electricity like any other commodity in the home.

“In the supermarket we shop around for the cheapest prices. Why should it be any different when it comes to gas and electricity? This is a more important time than any for households and businesses to take initiative to shop around for the cheapest gas and cheapest electricity deals available. Shoparound.com.au provides an easy-to-use gas and electricity comparison table where Victorians can compare the many deals offered by gas and electricity providers to find the most affordable price in these uncertain times.”

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