Bank Of America Could Cut Up To 30,000 Jobs
The nation's largest bank is looking at a whopping number of layoffs. Executives at Bank of America are considering cutting 25,000 to 30,000 jobs in the next few years.
The Charlotte (N.C.) Observer newspaper reported the news Tuesday, citing sources familiar with the bank's operations.
The move is similar to one announced last month by U.K. banking giant HSBC, which plans to cut 30,000 jobs by 2013.
BofA employed about 288,000 at the end of June, the Observer notes. About 10,000 of them work in downtown Charlotte, where the bank is based.
Reducing head count would put BofA in line with its nearest rival, JPMorgan Chase, which employs 38,000 fewer employees and is more profitable, the Observer says.
In July, BofA reported losing nearly $9 billion during the three months that ended June 30, the result of a $20.6 billion charge related to the company's acquisition of Countrywide, once the nation's largest mortgage lender.
Under pressure to improve profitability, Chief Executive Brian Moynihan in April announced plans to reduce costs and streamline the company.
It isn't known if the planned job cuts are part of the initiative, known as Project New BAC, according to the Observer.
But in a memo sent to senior management last month, Moynihan said the company's leadership will meet for a final review of "ideas for change" in early September.
The memo said, "We expect to begin communicating major outcomes and next steps soon thereafter."
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David Schepp has spent more than a dozen years covering business news for the electronic and print media, including Dow Jones Newswires, BBC News, Gannett Co., and most recently at AOL's DailyFinance. Nearly 10 years ago, he started writing a weekly People@Work column, looking in depth at issues facing workers in today's workplace. The syndicated column appeared in newspapers and websites nationwide before it made its debut on DailyFinance in 2010. Schepp now continues that tradition at Aol Jobs, covering the jobs beat and providing readers insight and analysis into the nation's challenging employment scene.
Schepp holds a Bachelor of Arts degree in journalism from Metropolitan State College of Denver.
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