Bank Of America Considering Huge Job Cuts

Bank of America is considering cutting at least 10 percent of its work force as part of a massive restructuring, according to published reports.

The Wall Street Journal said that officials at the Charlotte, N.C., bank have discussed cutting 40,000 employees, or 14 percent of the bank’s 288,000 total staff. Bloomberg put the job cuts at about 10 percent. They each cited people that were not identified by name.

Executives met Thursday in Charlotte and will gather again Friday to make final decisions on the reductions, the Journal said. A spokesman for Bank of America wasn't available to comment on the job reductions.

Bank of America has already cut at least 6,000 jobs this year as part of its reorganization under CEO Brian Moynihan, who has been in the top spot since last year. Moynihan earlier this week unveiled a shake-up in the bank's management ranks, announcing that two key officers will leave and the promotion of two others to share the chief operating officer role.

“It’s time to simplify the organization, streamline the organization and make sure our business processes are relevant when you have a smaller, more focused company,” Moynihan told Bloomberg News in a Sept. 6 interview. “We just don’t need to be the biggest.”

Moynihan is trying to boost the bank’s profits amid concerns about exposure to the slowing U.S. economy and a slew of mortgage-related losses and lawsuits, the Journal reported. The bank, still struggling under the weight of toxic mortgage loans, says the moves are part of "delayering and simplifying" operations. It has more employees than most of its major competitors, and top executives have stressed the need to eliminate redundancies resulting from past acquisitions.

The bank recently sold $5 billion of preferred stock to Warren Buffett's Berkshire Hathaway and also agreed to sell half its stake in a Chinese bank. Bank of America is also trying to sell a large portion of its mortgage business, the newspaper said.

The Journal said that most of the job cuts are expected to be made on its consumer side. It got rid of 63 unprofitable branches between April and June and said it plans to close 750 of its nearly 6,000 locations in the next several years.

Bank of America Corp. started a cost cutting program called “New BAC” — after the company’s stock ticker — in the spring. Moynihan said Tuesday that the second phase of New BAC will begin next month and run through March.

The cost-cutting program is designed to make Bank of America simpler for investors and clients to understand, as well as easier for Moynihan and his deputies to manage, according to a Bloomberg News report.

You must be logged in to post comments.

Password (case sensitive):
Remember Me:

Read Comments

Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Wolfgang Location: Chocowinity,NC on Sep 10, 2011 at 07:22 PM
    Good get rid of the dead weight. It is business Bank of America has to make a profit and bing up there stock value for investors. Who buy their stock. Their are also a lot of Demorats who also own their stock. Is this G W bush's fault too. LOL
  • by Risk taker on Sep 10, 2011 at 05:31 PM
    Hey hey, maybe I'll consider some BOA shares for my portfolio. When things improve in the economy, I might make some money.
  • by EnoughAlready Location: Washington on Sep 10, 2011 at 04:51 PM
    I guess the top dogs will be splitting up the $5 billion Warren Buffet invested. They sure aren't going to use it to pay salaries.
  • by Democrat Location: Kinston on Sep 10, 2011 at 04:33 PM
    Big bad bankers. Fire them all and let them walk the lines. Isnt this what our Government wanted. If they arent issuing loans they dont need the loan officers. If the government wants to put a business under a stress test they may end up culling the they have rightfully done here. Your stockholders thank you for doing the right thing. Now I wonder when the other banks will follow suit.
  • by Anonymous Location: Anywhere on Sep 10, 2011 at 04:13 PM
    Who cares?
  • by william Location: rocky mount on Sep 10, 2011 at 02:29 PM
    This should net the Board of Directors a fat bonus check. It'll probably total more than the salaries of those laid off combined. Great job guys!
  • by anon Location: Washington on Sep 10, 2011 at 11:49 AM
    I hope they do not cut any in Washington NC. They are already the slowest bank in town.
  • by Ed Location: Beaufort Co on Sep 10, 2011 at 10:08 AM
    I'll bet the CEO is still getting his $30 million a year, but hey lets not tax the job creators.
  • by Marie Location: Washington on Sep 10, 2011 at 09:57 AM
    I hope they do not lay any off in the Washington branch. When you go in there, you need to pack a snack now.
  • by Barlow Location: Winterville on Sep 10, 2011 at 09:55 AM
    Notice how their "streamlining" didn't produce any net job loss at the top, two gone, two promoted to replace them. Yet thousands of people who go to work everyday and do their job, while those at the top scheme to defraud the American people, will be left go. Just means more money for bonuses at the top. There are going to be huge fines coming for the deceipt and theft that went on during the Bush administration at Bank of America, but they will simply pay them and no one will go to jail. Until the individuals responsible for destroying ordinary peoples lives start doing time, there will be no end to the thievery.
  • Page:

275 E. Arlington Blvd. Greenville, NC 27858 252-439-7777
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 129575093 -
Gray Television, Inc.