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Navient lays off managers in Delaware, potential federal suit looms

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Delaware Public Media
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Wilmington-based student loan services company Navient has laid off a small number of managers as part of a corporate restructuring, according to a company spokeswoman.

Nikki Lavoie says the layoffs were announced to employees in May and to investors last month. She couldn't confirm how many managers had left the company or from what departments.

"With sort of any organizational change, leaders took a look at how can we operate our business effectively and efficiently," she says. "The redesign is part of that effort."

Navient, which split from Sallie Mae last year, employs 800 people in the First State out of nearly 7,000 nationwide. Lavoie says they'll continue hiring at their two Delaware offices, despite the layoffs.

"We created two main business teams: an asset management and services group and an asset recovery and business services group," Lavoie says. "[The restructuring and layoffs] helped to streamline layers and improve execution and efficiency in the business."

The news comes on the heels of the announcement that the federal government may pursue legal action against Navient for some of its business practices, including how they assess late fees. In May, they asked the company for more information before opening a case.

Lavoie says the layoffs are not related to that lawsuit. But she says the company, which is provides loan services to 12 million people nationwide, is responding to that request.

 

Last year, Navient paid $97 million alongside Sallie Mae in a settlement over high interest rates assessed against enlisted military members.

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