H&R Block said it will cut about 350 full-time positions and close about 200 company-owned offices, which will result in a drop in seasonal temporary employment.
NEW YORK (CNNMoney) -- Shares of H&R Block tumbled 16% in premarket trading Thursday after the tax prep company announced significant staff cuts and office closings, and projected weaker-than-expected earnings.
The company also announced a series of changes in its top executive ranks in its after-hours statement Wednesday, including that it is looking for a new chief financial officer, and that the president of its retail tax services is leaving the company effective April 30.
Shares tumbled $2.74 to $14 ahead of the market open.
The company said it will cut about 350 full-time positions throughout its Kansas City headquarters and nationwide field organization, and close about 200 company-owned offices, which will result in a drop in seasonal temporary employment.
The moves are expected to save the company of $85 million to $100 million a year. It will take a $30 million charge in the quarter associated with the staff reductions.
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