Ally Financial is set to exit the mortgage origination and credit card businesses. It intends to right-size the organization and focus on the auto business.

Ally Financial announced Wednesday that it would exit the mortgage origination business as part of a broader strategy to pursue higher returns on investments.

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.

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,