Stafford Loan Servicing (SLS) said Tuesday it would slash nearly 1,400 jobs and lay off about 3,000 staff members to reduce costs by $1 billion.SLS said it would lay off more than 1,800 employees and cut nearly 1.2 million hours of work.
It would also cut more than 7,000 hours of overtime, including nearly 4,000 in the past 12 months.
The layoffs will lead to about 300 layoffs at the company’s main office in San Jose, the company said.
SLS is one of the country’s largest loan servicers and the largest loan servicing company in the U.S.
Stafford Loan Servencing said it plans to lay off around 1,000 workers by the end of the year, and reduce its workforce by nearly 4 million by the beginning of next year.
It said the layoffs will result in about 300 layoffs and an average of around 700 layoffs annually.
The company has been trying to cut costs in recent years by outsourcing some of its loan servicing and other work to a number of companies, including the banks and credit unions it serves.
The company has also said it is exploring the possibility of merging with another lender.
Staffard Loan Servings said it will lay off 3,500 workers this year and reduce 2,600 jobs by 2020.
Sessions has repeatedly criticized SLS, saying the company had a “bogus” loan servicing business and should be shut down.SSA spokesman Mark Pendergrast said in a statement the company has a history of underfunding its own loan servicing.
SSA had no comment.