Industry News

H&R Block cutting another 575 jobs at Option One

Sale of mortgage lending unit to Cerberus in jeopardy

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H&R Block Inc. announced Tuesday it will lay off 575 workers from its Option One Mortgage subsidiary as it continues an attempt to salvage the sale of the business to Cerberus Capital Management L.P. The layoffs, which are in addition to a workforce reduction of 615 jobs announced in May, will cost the company $19 million, including $11 million in termination benefits and $5 million in lease terminations. H&R Block said at the end of August that it was working with Cerberus to modify the terms of an April 19 agreement to sell Option One Mortgage to the investment firm. In an Aug. 30 filing with the Securities and Exchange Commission, H&R Block said was unable to meet some conditions of the agreement, including requirements that Option One have $2 billion in loans funded within 60 days of closing and $8 billion in warehouse lines of credit. H&R Block said it was seeking to have those and other closing conditions waived or modified in hopes of closing the sale by Dec. 31....