As part of its previously announced cost-cutting initiative, which was necessitated by a reduced mortgage servicing portfolio and higher expected costs, Ocwen Financial (OCN) announced Thursday that it intends to reduce the size of U.S. workforce by 10%.
According to a release from Ocwen, the cutbacks will affect 300 of the company’s residential servicing employees at Ocwen’s facility in Waterloo, Iowa, representing 10% of the company’s approximately 2,900 U.S.-based employees.
Overall, as of Dec. 31, 2014, Ocwen had 11,400 global employees.
According to Ocwen, all of the impacted employees will have the opportunity to apply for employment at other Ocwen facilities, including 130 open positions at the Coppell, Texas facility.
Ocwen also announced that it will seek to lease approximately half of its 155,000 sq. foot facility in Waterloo, and said that it is working closely with the City of Waterloo and the Greater Cedar Valley Alliance & Chamber’s office of Economic Development to find the “right tenant.”
Ocwen noted in its release that it will continue to maintain a presence in Waterloo.
“We understand the impact that these decisions have on our employees, their families, and the community,” said Ronald Faris, president and chief executive officer of Ocwen.
“This was not an easy decision to make, but a necessary one as we look to transform Ocwen to ensure long-term success,” Faris continued. “We appreciate all the support and dedication our Waterloo employees have shown over the years, and we look forward to remaining part of the Waterloo business community.”
Earlier this month, Ocwen told its investors that it expects to take a loss in 2015, after a 2014 that saw the company a net loss of $546 million, a stark reversal from 2013, when Ocwen reported net income of $310.4 million.
Ocwen actually posted profits – albeit small ones – in the first and second quarters of this year. In the first quarter, Ocwen reported net income of $34.4 million, while in the second quarter, Ocwen reported net income of $10 million.
At the end of July, Faris told investors that the second half of 2015 will be “challenging” from an income perspective for Ocwen, which is part of the reason for the company’s massive cost-cutting initiative, which is designed to trim Ocwen’s expenses by more than $150 million.