Tax services provider H&R Block cuts 400 jobs, closes 400 locations to reduce costs

H&R Block cuts 400 jobs, shuts 400 stores

KANSAS CITY, Mo. — H&R Block Inc. said Wednesday it will trim 400 jobs and has shut 400 underperforming locations as it seeks to reduce costs.

The tax services provider expects the cuts in its field and corporate support organization will cut annual operating costs by $140 million to $150 million by the end of fiscal 2012.

H&R Block will book a pretax charge of about $28 million, primarily in its fiscal first quarter ending in July, to cover severance costs. It employs about 133,700 workers overall.

Last month, H&R Block reported that during tax season its tax preparation fees in its retail operations slid 5.5 percent to $2.61 billion. Same-office tax returns prepared in retail operations fell 4 percent while total tax returns prepared were down 4.9 percent over the prior year.

The Kansas City, Mo., company operates about 11,000 stores.