NYCB’s Flagstar Cuts 700 Staff With More to Depart in Unit Sale

New York Community Bancorp’s Flagstar Bank is eliminating 700 jobs, or 8% of the workforce, as part of the lender’s effort to turn around its business.

The company, which plans to take the Flagstar name later this month, also expects that a previously announced sale of its residential mortgage servicing business will reduce its workforce by an additional 1,200 employees when the transaction is completed this quarter.

“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,” Chief Executive Officer ...