According to one person familiar with the company, workers who receive layoff notices will likely stay until the end of the year and receive a retention bonus. Alt-A mortgages are loans that are given to customers with minor credit problems or that do not have the documentation to receive traditional, prime mortgages. Washington Mutual will likely take a $4 billion loss provision during the second quarter, after setting aside about $3. Earlier in the session, shares hit a 17-year low of $3,27.

failed late Friday and was taken over by the Federal Deposit Insurance Corp. WaMu is hurting. The Seattle thrift declined to confirm that it\’s cutting more workers but spokeswoman Darcy Donahoe-Wilmot said in a statement: \”I don\’t have any details to share with you at this time, but I can tell you that we\’re looking critically at everything we do. IndyMac was a large lender of alt-A mortgages during the housing boom earlier in the decade.

The layoffs were announced to employees in Seattle at a conference call Friday. Washington Mutual mortgages is hurting. As Washington Mutual continues to build its loss reserves, which will likely last into the second half of 2009, it will likely remain unprofitable, Harting said. Harting estimates Washington Mutual will lose $1.

In April, the company said it would close its 186 home loan offices nationwide. WaMu could not confirm that information. 48 per share during the second quarter. Washington Mutual Inc.

Shares of Washington Mutual Inc plunged Monday afternoon as investors shied away from banks with large mortgage portfolios after IndyMac Bancorp Inc. WaMu, suffering heavily through the housing market\’s downturn, has announced more than 7,300 layoffs since last December. By its most recent count, WaMu employs 45,833 employees. 49 in afternoon trading.

They\’ll also receive a severance at the end of that time. IndyMac faced a run resulting in more than $1. Harting estimates Washington Mutual will eventually take $26 billion in losses from its current balance sheet, with $21 billion related to mortgages. That move resulted in 3,000 layoffs.

the banking industry, including Washington Mutual is in decline. Analysts polled by Thomson Financial, on average, forecast a loss of 93 cents per share for the period. And everything is on the table except what\’s necessary to maintain outstanding customer service and ensure we have high-quality controls in place. Regulators stepped in to take over operations over worries the bank did not have enough capital to meet short-term obligations.

5 billion during the first quarter, Harting wrote in the note. Lehman Brothers (nyse: LEH - news - people ) analyst Bruce Harting wrote in a research note that Washington Mutual will need to \”substantially\” increase its loss reserves to cover still mounting losses in its mortgage portfolio. Its most recent announcement came several weeks ago when it said it would cut 1,200 employees across the country. 3 billion in funds withdrawn over an 11-day period.

With the housing market still weak, those losses are expected to continue to climb for the foreseeable future. Need a mortgage, call Washing Mutual and be in big trouble. WaMu is the fourth-largest bank in the East Bay by deposits. Banks across the country have faced rising losses tied to a spike in mortgage defaults over the past year.

Banks with large portfolios of mortgages, especially those with large concentrations in areas where the mortgage market has been hit the hardest or with nontraditional mortgages, have struggled Monday after IndyMac bank was taken over by the government Friday.