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H&R Block Cuts 575 Option One Mortgage Jobs

H&R Block, the largest U.S. tax preparer, on Tuesday said it will eliminate 575 jobs at its Option One Mortgage Corp subprime lending unit, on top of 615 job losses announced on May 15.

The largest U.S. tax preparer expects to incur a $19 million pretax restructuring charge in its current fiscal year in connection with the additional cuts. It said Option One expects to complete the expanded restructuring by December 31.

In April, H&R Block had agreed to sell Option One to private equity firm Cerberus Capital Management. On Aug. 30, H&R Block said the sale may fall apart, and that Cerberus might buy just the loan servicing business.

H&R Block disclosed the latest job cuts and expected charge in a U.S. Securities and Exchange Commission filing.