Flagstar Bancorp To Cut Approx. 600 Positions - Quick Facts

(RTTNews) - Flagstar Bancorp Inc. (FBC) announced it has implemented an organizational restructuring to reduce expenses. The company will reduce staffing levels across the organization by approximately 600 positions from its September 30, 2013 headcount level.

Flagstar expects the restructuring will generate annualized cost savings of approximately $40 million when fully-implemented by the end of the first quarter of 2014. The company expects to incur a pre-tax charge of approximately $5.2 million related to the restructuring.

Alessandro DiNello, Flagstar's CEO, said: "This restructuring will align our infrastructure with today's business environment, including the significantly reduced mortgage origination market. The decision to downsize our workforce is a necessary step on the path to achieving the company's long-term goals. These organizational changes will have no impact on our clients."