Ocwen’s stock soared today with an increase of 8.941% as of 1:23 Eastern Time after it announced its recent layoff of 120 employees.
As first reported by HousingWire on Thursday, Ocwen decided to layoff 120 of its employees in order to move its reconstruction efforts forward.
“After an extensive analysis of our cost structure, we made the difficult decision to reduce staffing levels to better align the company's resources with our current strategy and market opportunities,” Ocwen said in a statement to HousingWire.
The layoffs are part of the company's attempt to reduce the company’s expenses. During the first quarter of 2016, the company reduced expenses by about $50 million, according to Ocwen President and CEO Ron Faris.
The next day, Ocwen's stock soared.
In fact, Ocwen was included in the list of the top five gainers as of 1:00 P.M. Eastern Time, according to an article by Gaurav Batavia for Seeking Alpha.
For more on Ocwen’s decision to layoff about 4% of its U.S. workforce, click here.
[Correction: This article is now updated to accurately reflect Ocwen's cost-cutting measures]