Flagstar Bank, a subsidiary of NYCB.US, will lay off 700 people.

New York Community Bancorp (NYCB.US) said it will cut 700 jobs, or 8% of its workforce, at its Flagstar Bank unit as part of its efforts to turn around the business. The bank will also lay off an additional 1,200 employees after the sale of its residential mortgage servicing business, which was announced earlier this year, it said. Most of the employees affected by the sale will have the opportunity to transfer to the buyer, the bank said in a statement on Thursday.

Former Office of the Comptroller of the Currency director Joseph Otting, who was appointed CEO in March, said in a statement on Thursday: "While these strategic actions involve difficult decisions, including impact to employment, we believe they are necessary to strengthen our financial foundation and build a more flexible and competitive company."