The First Marblehead Corp. announced today that it is reducing operating expenses related to its student loan business and streamlining its operations. The company said it expects to lower its operating expenses by approximately $200 million pre tax on an annualized basis and has eliminated approximately 500 jobs on all levels of the corporate ladder.
These changes come as a result of the bankruptcy announcement from The Education Resources Institute (TERI), which was then followed by a major client's decision to exit the private student loan industry and terminate its relationship with the company, as well as the continued disruption in the capital markets.
First Marblehead will be releasing its financial and operating results for the three-month and nine-month periods ended March 31, 2008 on May 8, 2008.
