Struggling New York Community Bancorp (NYCB) said Friday that it is cutting 700 jobs at its Flagstar subsidiary as it tries to return to profitability after being rescued by investors earlier this year.
The bank said the cuts amount to 8 percent of its head count. It’s also selling its mortgage-servicing business to mortgage company Mr. Cooper, which will mean trimming another 1,200 employees from its payroll. Most of those employees will be offered the chance to transfer to Mr. Cooper, NYCB said.
