IndyMac Bancorp Inc. said Friday it may swing to a loss in the upcoming quarter and is cutting its workforce by 10 percent as it expects to sell fewer loans into a balky secondary market and as it cuts back on making riskier loans.

In a filing with the Securities and Exchange Commission, the Pasadena-based lender said it could break even or post a loss of as much as $36.8 million (50 cents per share) a huge departure from the $86 million ($1.19) the company reported for the third quarter a year ago. IndyMac is scheduled to report earnings on Nov. 2.

The lender also said that it plans to cut 1,000 jobs and cut its quarterly dividend in half. Chief Executive Michael Perry said he will ask IndyMac’s board to lower the quarterly common stock dividend to 25 cents per share from 50 cents.

This announcement comes after IndyMac said it had essentially eliminated all subprime and piggyback loans from its product menu. It also has been ramping up its jumbo loans, those over $417,000, and loans that comply with standards set by U.S. government-sponsored entities Fannie Mae and Freddie Mac, which only buy prime or better loans on the secondary market. IndyMac added that it expects to sell 76 percent of its loans on the secondary market this quarter, down from 90 percent in the second quarter of 2007 and 96 percent in the first quarter.

The lender also said it expects to originate about $31 billion in loans during the second half of this year, a 36 percent decline from the first half of 2007. IndyMac also estimated that 84 percent of its loan production in the fourth quarter of this year will be insurable by the Federal Housing Administration up substantially from 19 percent in 2006.

Shares in IndyMac were off 4 percent, or 88 cents, to $20.80 in afternoon trading Friday on the New York stock Exchange.