Ally Financial Inc. will cut jobs, end mortgage originations and consider strategic alternatives for its credit-card business as borrowers have struggled to pay down costly debt.

As mortgage rates are expected to remain higher for longer, Ally Financial ALLY will be exiting the mortgage origination business. Further, the company is seeking “strategic alternatives” for its credit card business.

Ally Financial Inc. (NYSE: ALLY) is reducing its workforce by several hundred positions, a move that comes after the bank said it is exiting a key business and looking at alternatives for another unit.

Ally Financial (NYSE:ALLY) will exit the mortgage origination business and is considering alternatives for its credit card business, according to a media report on Wednesday. The move to leave the mortgage origination business would affect less than 5% of the company's workforce,