Eighty GE Money staff in New Zealand will lose their jobs as the company stops offering some of its loan services because of the global financial crisis.
A further 255 jobs will also be made redundant in Australia in the next 12 months, the company said on Friday.
GE Money says it will stop offering home loans through third parties, motor finance and small business finance loans.
GE Money Australia and New Zealand chief executive Mike Cutter says the move is due to extreme volatility and the greatly increased cost of funds on the global market.
Mr Cutter says the company can no longer make returns on the home loan and motor finance products because of the current economic climate. He says GE Money will continue to service existing loans.
Mr Cutter says the decision does not affect personal loans, retail store finance, credit cards or the company's insurance services.
The Motor Trade Association says the move could see more job losses.
MTA's marketing manager, Ian Stronach, says the GE Money decision not only hurts consumers trying to borrow money, but also dealers stocking up on vehicles.
He says credit lines are getting tighter by the day, and even well-established car dealers are struggling to find finance.
