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updated 10:53, Wed September 12, 2007

H&R Block Cuts More Jobs and Takes More Charges for Its Option One Mortgage Lending Unit

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NEW YORK (AP) -- Tax preparer H&R Block Inc. will cut more jobs from its mortgage lending unit and take charges for restructuring the business, according to a regulatory filing on Tuesday.

In a filing with the U.S. Securities and Exchange Commission, H&R Block said it will cut an approximately 575 jobs, in addition to a previously announced 615 cuts, at Option One Mortgage Corp., which it has been trying to sell.

Also, the company will take $19 million in restructuring charges in fiscal 2008 related to Option One, in addition to previously announced charges, including $11 million in termination benefits, $5 million in lease termination costs and $3 million in other costs.

H&R Block said earlier this year it planned to sell Option One to Cerberus Capital Management, but in August said continued problems in the credit markets forced a renegotiation of the sale.

H&R Block plans to complete the restructuring by Dec. 31, according to the filing.

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