A Pennsylvania-based mortgage insurer is laying off dozens of employees, as reported by the Pennsylvania Department of Labor and Industry.
A Worker Adjustment and Retraining Notification Act (WARN) notice filed with the department indicates that Radian Group intends to lay off 70 workers. Per the WARN notice, the effective layoff date is September 13, 2024.
"Over the last few months, we have been highly focused on aligning our expenses to reflect the market opportunity we see for each business. As a result, we have streamlined areas of our technology team and various other areas to attain operational efficiency. The WARN notice reflects these recent actions," a spokesperson from Radian wrote to NMP. "These were tough decisions, and we are deeply grateful for the outstanding work of our talented team."
An 8K filing for the U.S. Securities and Exchange Commission (SEC) on July 8 said that Radian notified its Senior Executive Vice President and Chief Franchise Officer, Brien J. McMahon, that his position was being eliminated and that his employment would be involuntarily terminated without cause, also effective September 13.
"The streamlining also resulted in gradually aligning our sales efforts into their respective businesses, which has lessened the need for a Chief Franchise Officer at an enterprise level," the spokesperson added. "We believe this allows us to better align our sales strategy with our business goals, provide a more cohesive team approach and a more seamless experience for our customers. For nearly five decades, Radian has been a leader in customer service and support, and that focus will remain. Our sales and service teams are aligned to the businesses and customers they serve, and we look forward to continuing to drive revenue and exceed customer expectations for many years to come."
Per the 8K filing, McMahon is expected to remain in his position with Radian through the layoff date and will be entitled to receive the compensation and other benefits applicable to a qualifying termination under a previously disclosed Executive Severance Agreement, which was filed with the SEC on April 5, 2024.
The filing also read that in order for McMahon to receive the severance and other benefits, he must "execute a release of claims against the Company upon termination of his employment."
The filing included that McMahon agreed not to compete with Radian, nor solicit its employees or customers for 12 months following his termination date.
"Brien joined the company 14 years ago as our first Chief Franchise Officer and helped transform the company's sales and service efforts into an enterprise discipline that served Radian well and allowed our customers to succeed," Radian's spokesperson elaborated. "He led the growth of our market position through the development of a world-class sales organization driving long-lasting customer relationships for Radian, which have been and continue to be highly valuable to our MI and other businesses. We are grateful for the tremendous job Brien has done and wish him all the best in the future."
