American General Finance plans to cut 500 jobs and close 150 offices, the company said Tuesday.
A subsidiary of American International Group since 2001, American General Finance has its headquarters and several branches in Evansville.
Mark Herr, an AIG spokesman, declined to say where or when the cuts and closings will occur.
"Where possible, we intend to reassign employees," he said.
"We will continue to serve our customers through our remaining 1,200 offices."
The company had 8,000 employees at the end of last year. As reasons for the decision, Herr cited market conditions and liquidity constraints.
Like many lenders, American General Finance has been harmed from the tight credit markets seen in recent times. The company has long borrowed money to help pay for its operations.
But American General Finance began to see those sources dry up after troubles began to appear at AIG. For 2008, American General Finance reported a loss of $1.3 billion.
In the fourth quarter of that year, it closed 179 branch offices and cut 380 jobs. Those closings included all of the company's branches in Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island.
Also shut down was American General Finance's office at the corner of South Green River Road and Covert Avenue in Evansville.
AIG has been selling off assets to pay off the billions of dollars in bailout money it has received from the federal government. At one time, those sales were to include American General Finance, though it is no longer clear whether a buyer can be found in the current market.
AIG has said it will support its Evansville subsidiary at least through the next year or until a sale occurs. AIG plans to report its first quarter earnings Thursday.