Flagstar has announced it will cut around 600 positions across the organization as it undertakes a restructure to reduce expenses.
"The decision to downsize our workforce was not made lightly, but is a necessary step on the path to achieving the Company's long-term goals. We appreciate the many contributions of our dedicated employees and we remain committed to community banking in Michigan and mortgage origination and servicing nationally. These organizational changes will have no impact on our clients," the company's president and CEO Alessandro DiNello said.
The company claimed the job cuts would generate annual savings of around $40m by the time they are fully implemented by the end of the first quarter.
Flagstar has faced other difficulties in the past year, entering into an agreement in November to pay Fannie Mae $93.5m
over repurchase claims. In July last year, Flagstar said it would shed jobs
in its servicing department due to outsourcing.
A major lender will slash 600 jobs in a bid to reduce costs.