KANSAS CITY, Mo. — H&R Block, the nation's largest tax preparer, said last week that it would cut 505 corporate staff positions in an effort to reduce overhead expenses by $110 million a year.

The Kansas City-based company, which has been hurt by the subprime woes engulfing its soon-to-close mortgage subsidiary, said 325 corporate employees would lose their jobs and 180 open positions would not be filled.

The cuts will affect positions in Block's human resources, information technology and legal and marketing departments, said Block spokeswoman Linda McDougall.

The company has not ruled out additional job cuts at its headquarters or elsewhere. About 1,625 people work at the headquarters.

"This certainly has enabled us to meet the target that we set for cutting costs here in Kansas City," McDougall said. "But there's going to be an ongoing look at how we might improve efficiencies and improve shareholder value as well."

The job cuts don't include employees in Block's tax-preparation division. The company said in an internal memo last week that any cost-management issues in that area would be addressed at the end of the tax-filing season.

The cuts announced Thursday are to occur no later than April 30. Block said it expected to reduce payroll expenses by $50 million, or 12 percent of its corporate compensation and benefit costs. Block also plans to reduce traveling, consulting, entertainment and other overhead expenses by $60 million, or 18 percent.

The company said it expected to incur a pre-tax charge of $17 million related to severance-related benefits. Most of the charge will be taken in the third quarter ending Jan. 31, 2008. The rest will be taken in the quarter ending April 30, 2008.

McDougall declined to provide details about the severance packages.

"We are making severance benefits available. It's a typical package, and it does include outplacement services for our associates," she said.

In a statement, Block Chairman Richard C. Breeden said the cuts were "another step in our efforts to refocus the overall business of H&R Block and to tighten efficiency."

"This reduction in Kansas City corporate staff reflects the downsizing of the company as a result of our exit from the mortgage business," he said, "as well as a determined effort to attack excessive costs across the board in the rest of the company."

Block is winding down its mortgage subsidiary, Option One Mortgage Corp., after efforts to sell the California-based subprime lender collapsed. Block reported a loss of $502.3 million in its second quarter ending Oct. 31, largely because of Option One.

The closure of Option One will lead to the elimination of 620 loan production jobs.

Breeden, a former head of the Securities and Exchange Commission, became chairman of Block late last year after winning a pitched proxy battle over the direction of the company and securing a seat on its board of directors.