About 450 people will lose their jobs when Ditech Financial closes its Rapid City mortgage and financial call center late next year.
The Fort Washington, Pa., and St. Paul, Minn., based mortgage lending and servicing firm confirmed via an email statement its decision to close the Rapid City call center in November 2019.
“Earlier this month, several of our leadership team members met with employees of our Rapid City, South Dakota location to let them know that we have made the difficult decision to close the office when our lease expires in November of 2019,” the statement read. “This outcome has been part of a thorough evaluation process in selecting the locations that will best accommodate our long-term business requirements and the needs of our customers,”
The company said it will continue to work in Rapid City to smooth the transition and minimize impact to customers.
“During the coming weeks and months, Ditech will be working with the approximately 450 employees in Rapid City to answer questions and provide details regarding this decision,” the statement read.
Ditech was founded in 1995 as one of the first online mortgage lenders. The name went away during the subprime mortgage crisis in the late 2000s, but returned in 2014.
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Rapid City mayor Steve Allender said in an email to the Journal that the impending closure was not unexpected.
“But it is still bad news for the employees of the company and bad news for Rapid City,” he said.
“The closing is due to a condition of the national company and not an indicator of a poor local economy,” Allender said. “The good news is, Ditech’s employees will be very marketable in the Rapid City area."
The news continues a trend of call center job cuts across the state. Television station KELO reported on Tuesday that Sioux Falls has lost more than 1,000 call center jobs in the last three years.
The layoffs include 750 jobs lost when Capital One closed a call center in 2015. Since April of this year, Alorica laid off 260 employees and Citi cut about 80 jobs.