American Financing Corp. is laying off a majority of its workforce in the next five weeks, the mortgage banker confirmed in a disclosure Wednesday afternoon.
The company is cutting 194 of its 305 employees at its Aurora, Colorado-based headquarters, it revealed in a Worker Adjustment and Retraining Notification. Economic conditions have "unexpectedly and dramatically decreased" AFC's sales volume, which rapidly declined since the second half of October, the notice said.
"But only in late October did it become clear that AFC's October sales would fall well below projections," wrote Benjamin Ross, general counsel for AFC, in the WARN. "And in early November, AFC realized that its November sales and sales for the future would follow suit, being much lower than AFC anticipated only days before. These recent results force AFC to revise its forward projections, reduce its workforce, and give reduced notice."
The WARN Act requires employers provide notice of layoffs 60 days prior to any action, although the federal law includes many exceptions.
The layoffs will occur in two waves around Friday, Nov. 18 and Dec. 23. None of the affected workers are represented by a union, according to the WARN, and no bumping rights exist. A list of impacted personnel and their positions was not included in the publicly-available filing.
Representatives for the company didn't respond to requests for comment Wednesday, although impacted staff confirmed the cuts in LinkedIn posts.
The company operates in 50 states, provides salary-based mortgage consultants, and offers conventional, Federal Housing Administration, Veterans Affairs and USDA loans alongside adjustable rate mortgage, jumbo loan and bank statement loans. AFC also touts endorsements from a bevy of radio personalities and former Denver Broncos quarterback Peyton Manning, featured prominently in the company's advertising.
The mortgage banker's layoffs are the most recent in a spate of
