First Marblehead cuts 24 percent of work force

BOSTON - First Marblehead Corp., which packages student loans for sale to investors, said Wednesday it has cut about 24 percent of its full-time work force in an effort to trim costs.

As of June 30, the company had 368 workers. A spokesman declined Wednesday to say how exactly many workers the latest cuts affected. The latest moves affect workers at the company's Boston headquarters and at a processing center in suburban Medford, Mass.

In May, the company slashed 500 jobs, or more than half its work force. Layoffs and attrition had already reduced the company's work force from about 1,000 in the summer of 2007.

Tightness in credit markets has hurt a range of lenders, including those that make student loans. There have been rising defaults among student borrowers.

First Marblehead shares fell 15 cents, or 8 percent, to $1.72. The stock has lost 95 percent of its value since trading at a 52-week high of $36.10 a year ago.

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