Bank Of America Could Cut Up To 30,000 Jobs

Bank of America layoffThe 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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Filed under: Employment News, Layoffs

David Schepp

Staff Writer

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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fidonv

30,000 laid off? Couldn't happen to nicer bunch! That Bank and it's employees have leached off of the public from day one. They foreclose on homes because 80% of the default amount is paid back to them by Private Mortgage Insurance and they get the house to auction off or resale too. They don't want to work with anyone. They lose nothing! They get all their money, interest included in a couple years instead of 30.

June 14 2012 at 4:53 AM Report abuse rate up rate down Reply
gjohn411

Even more reason to use B of A.

September 07 2011 at 2:38 PM Report abuse rate up rate down Reply
bfgair

They should start at the top and lay off MOST of the executives first. Those making over a Million dollars a year. That should solve a LOT of their problems and only have to lay off half as many due to the dollars saved on USLESS equipment. Just like the asians that place the blame for failed companys on the Managment where it belongs not on the employees that simply follow the managments orders and example they set for others within the company.

September 07 2011 at 2:38 PM Report abuse rate up rate down Reply
keaahrii

Yes, lets cut back on the low end people, lets fire the ones who actually do the work that makes the money. Lets not fire the people who make millions a year, and who's loss would make the company much more profitable while only laying off 2-3 people. This is like filling in the small holes while the giant one sinks the ship. "We need more profits" is the rallying cry of businesses everywhere it seems. Maybe if they actually took care of their customer base they would be more profitable.

September 07 2011 at 2:29 PM Report abuse +1 rate up rate down Reply
niceyicy412

I hope President Obama comes out with real boxing gloves on tomorrow night with the Rocky theme song playing loud. It's now or never! Raise taxes back to where they were when Clinton was president for the top 1%. We the American people will survive this helping each other and we can see who wins the election when the time comes. Go For It, God's Speed

September 07 2011 at 1:58 PM Report abuse +1 rate up rate down Reply
Cognitorsj

B of A employees ignored a friend's attempts to modify the mortgage on terms favorable to B of A.
Finally, after being out of work for a year, and having the property go under water by $280,000, my friend simply stopped paying B of A on the mortgage.

B of A employees started calling my friend 3-6 times a day. By that time it was too late.

My friend had to go through a short sale. She lost her home thanks to the B of A stupidity.
B of A took a hit of about $230,000 after consenting to the short sale, the only intelligent thing it did in 19 months.

B of A could have handled this differently and not lost the money. IF it had been willing to modify the loan to a 30 year loan at a different interest rate, it could have continued to get paid and not have taken a bath.

The B of A employees were surly, unkind, mean spirited, and sometimes downright nasty.

Whoever trains them and keeps them should be coached. Perhaps they are that way because they work for B of A.

I would avoid B of A and its minions.

September 07 2011 at 1:54 PM Report abuse +1 rate up rate down Reply
bill griffis

only care about profits and making people pay for there misakes with more fees fees.

September 07 2011 at 1:53 PM Report abuse rate up rate down Reply
niceyicy412

The top one percent and the puppet (Republicans) doing as their told are actually willing to let the country fail. Practically everything the president tries to do to help Americans is said NO to by the Republicans. But hang in there because I know how powerful money can be, But I doubt if the top one percent can handle the power of the American People. The old saying Be Careful Of What You Wish For- little big bucks. P.S. Its not your bucks that are little.

September 07 2011 at 1:50 PM Report abuse +1 rate up rate down Reply
p9665cohagan

Just tell me when to get out ! Been with them for 30 years ? Dont know were else to go?

September 07 2011 at 1:46 PM Report abuse -2 rate up rate down Reply
1 reply to p9665cohagan's comment
mb3d

too bad you just missed the Labor Day mattress sales! Why, a king size mattress should easily hold the money you have in Bank of Amemica.

September 07 2011 at 1:54 PM Report abuse rate up rate down Reply
Sir Thomas

BOA is the worst type of maurauding financial institution, reaping millions and millions a year in questionable fees.

September 07 2011 at 1:35 PM Report abuse +2 rate up rate down Reply

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