New York Community Bancorp in Hicksville is planning to cut about 700 jobs at its bank.
The $119.1 billion-asset company said in a press release that the cuts represent about 8% of Flagstar Bank’s workforce. Another 1,200 jobs will go away when the company completes the previously announced sale of its mortgage servicing business to Mr. Cooper.
“As part of our commitment to a profitable future, we launched a transformation strategy earlier this year to drive change throughout the organization,” Joseph Otting, the company’s chairman, president and CEO, said in the release.
“This includes strengthening our management and board, redefining our operational plan for improved efficiency and enhancing our credit oversight and risk framework,” he added. “While these strategic actions involve difficult decisions, including impacts on jobs, we believe they are essential for strengthening our financial foundation and building a more agile, competitive company.”
New York Community has struggled with exposure to commercial real estate. It raised $1 billion in fresh capital earlier this year, which led to Otting becoming its leader. The company earlier this week announced plans to rebrand itself at Flagstar Financial.