RESTON, Va. - USA Education Inc.'s Sallie Mae unit will reduce its work force by 25% and consolidate operations, resulting in a third-quarter charge estimated at $50 million.
The restructuring, which is to reduce the company's staff by 1,700 in the next 15 months, comes after the company's acquisition of USA Group in July.
In a press release Thursday, the educational loan provider said it would consolidate its loan servicing operations in six sites - Indianapolis; Killeen, Tex.; Marlton, N.J.; Panama City, Fla.; Summerlin, Nev.; and Wilkes-Barre, Pa.
A Lawrence, Kan., facility will be closed, and a Chandler, Ariz., office will be streamlined to focus on client relations.
The information technology group will also reduce its staff and move most functions to Indianapolis from Reston, Va.