Flagstar Bank, a subsidiary of New York Community Bank (NYCB.US), will lay off 700 employees

The Zhitong Finance App learned that Flagstar Bank, a subsidiary of New York Community Bank (NYCB.US), will lay off 700 employees, accounting for 8% of the total number of employees. This is part of the bank's effort to turn its business around. According to reports, New York Community Bank will change its name to Flagstar Financial, the stock code will be changed to “FLG,” and the name change will take effect on October 25. The bank also expects to lay off another 1,200 employees after the previously announced transaction to sell the residential mortgage service business is completed this quarter. Community Bank of New York said in a statement on Thursday that most employees affected by the sale will have the opportunity to move to buyers.

Joseph Otting, former Director of Monetary Affairs and named CEO in March, said in a statement on Thursday: “While these strategic actions involve difficult decisions, including the impact on employment, we believe they are essential to strengthening our financial base and building a more flexible and competitive company.”