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 The bulk of the 325 filled and 180 open positions are at the company's headquarters in Kansas City, representing about 23 percent of its corporate workforce.
H&R Block said in December that it was reviewing its expenses as it deals with the closing of its subprime mortgage arm, Option One Mortgage Corp., and considers the future of its investment advice, business services and banking operations.
The cuts are expected to save $50 million a year in salary expenses, the company said in a statement. H&R Block also plans to cut another $60 million in other expenses, including consulting, travel and entertainment, representing about 18 percent of such costs.
The company said none of the cuts will affect its tax or business services, which are in the midst of the income tax season that makes up the bulk of H&R Block's annual revenue and profits.
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 The layoffs are expected to be completed by April 30 and will require a pre-tax charge of $17 million for severance costs, most of it falling in the company's third quarter.
"While these steps are painful, they are necessary to reconfigure H&R Block to improve operating margins and cash flow," said Richard Breeden, the company's chairman. "We believe that the result will be a stronger company with greater ability to grow its shareholder value and its position in the market."
Company spokeswoman Linda McDougall could not say whether more job cuts are expected, saying the company was looking for ways to improve efficiency and increase shareholder value.
The company shares gained 49 cents, or 2.6 percent, to $19.24 in trading Thursday before the announcement came out. They gave back 19 cents, or 1 percent, to $19.05 in after-hours trading.
[Associated Press; By DAVID TWIDDY]
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