Flagstar Bank will lay off about 700 additional employees “as part of its strategic transformation plan,” according to the Hicksville-based bank's parent company.
New York Community Bancorp, which acquired Flagstar in 2022, said in a statement Thursday that the layoffs represent about 8% of the bank's workforce.
According to NYCB, these job cuts are part of approximately 1,200 employee reductions due to the impending sale of Flagstar's mortgage repayment and third-party origination business to Nationstar Mortgage LLC, which operates a business similar to Cooper's. The Central Bank of New York said it would be in addition to the
Most of those 1,200 employees will have the opportunity to transfer to the buyer, according to NYCB.
The sale is expected to take place in the fourth quarter of this year.
NYCB could not be reached for comment Friday morning. It's unclear how many of the affected employees work on Long Island.
President and CEO Joseph Otting said in a statement Thursday that NYCB embarked on a strategy this year to strengthen its operations, improve efficiency and strengthen credit oversight.
“While these strategic actions involve difficult decisions, including the impact on employment, we believe they are essential to strengthening our financial foundation and building a more agile and competitive company. “This will enable us to focus on strategic investments in other areas, better serve our customers and shareholders, and ensure long-term sustainability and profitability.”
Flagstar Bank NA operates 419 branches in 12 states and has a large presence in the Northeast and Midwest. The bank has more than 40 branches on Long Island.
According to NYCB, Flagstar Mortgage operates throughout the United States through a wholesale network of approximately 3,000 third-party mortgage originators.
Check back for updates on this developing story.
