Bank of America To Cut 16,000 Jobs By Year End, Report Says

Bank of America cutting jobs

Bank of America is planning to cut 16,000 jobs by year end as it speeds up a company-wide cost-cutting initiative amid declining revenues, The Wall Street Journal reported on Wednesday.

The job cuts would put the second-largest U.S. bank a year ahead of schedule in eliminating 30,000 jobs under a program called Project New BAC. The job cuts could shrink the bank's workforce below that of rivals JPMorgan Chase and Wells Fargo. The reductions were outlined in a document given to top management, the Journal reported. Since taking the helm in 2010, Chief Executive Brian Moynihan has been working to streamline and reduce risk at a company that has lagged rivals in recovering from the financial crisis, largely due to mortgage-related losses.

Bank of America spokesman Larry Di Rita declined to comment. The bank had 275,460 employees at the end of the second quarter.

Under Project New BAC, Bank of America has said it planned to eliminate $5 billion in annual expenses and 30,000 jobs by the end of 2013, largely through cuts in consumer and technology areas. A second phase is expected to eliminate $3 billion in annual expenses by mid-2015 by making undisclosed cuts in capital markets, commercial banking, and wealth management areas.

In the second quarter, cost savings from the first phase were running at an annual pace of $970 million, behind a goal of $1 billion, the Journal said, citing the document.

Bank of America is one of many financial companies slashing thousands of jobs amid new regulations and a tepid economy that are crimping revenue.

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palmtree3334

fban of america has a nasty attitude and naty employee... Most of them have to go.. I CUT UP MY BANK OF AMERICA CREDIT CARD AFTER SPEAKING WITH A NASTY EMPLOYEE THERE.... LET THEM ROT!!!!

September 26 2012 at 9:51 AM Report abuse rate up rate down Reply
palmtree3334

fban of america has a nasty attitude and naty employee... Most of them have to go.. I CUT UP MY BANK OF AMERICA CREDIT CARD AFTER SPEAKING WITH A NASTY EMPLOYEE THERE.... LET THEM ROT!!!!

September 26 2012 at 9:51 AM Report abuse rate up rate down Reply
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September 23 2012 at 11:10 PM Report abuse rate up rate down Reply
CMEL57

Hopefully Bof A will be the next bank to collapse and shut down. Bunch of a-holes running the company. Karma will get them for all of their underhanded bank practices.

September 23 2012 at 6:49 AM Report abuse rate up rate down Reply
andrevaugh

I truly feel sorry for the regular working stiffs that through no fault or influence of theirs, will be the ones who are truly getting screwed. Amazing they WANT to cut their IT department. B of A is scum. We know that. But one of the best ATM features that NO OTHER BANK HAS; i.e. depositing checks, AND loose cash - with no envelope, and the options of just a receipt for the transaction, A summary, or a receipt with the image(s) of the check! They have some talent in probably the best department in the whole organization! If they stay in character in showing no loyalty to their customers, there will be no loyalty shown to long-term employees either! Unfortunately, I see last hired will be fired, but I bet how many 25 - 30+ year employees; many will be just on the verge of retirement, will end up on the chopping block and be screwed out of their years of toil.

About the time Bank of America (originally known as the Bank of Italy) started acquiring other banks, there was a reason that the grand daughter of the founder, A.P. Giannini, resigned from the Board of Directors realizing they had no cause to care about customers or employees except to separate them from their cash and property. Without the Bank of Italy, San Francisco's merchants and companies would not have recovered so quickly, and with robust growth. I say FIRE THE TOP BRASS, and take out "Upper-Middle" management first, hire top brass with much less compensation with no "golden parachutes" who are effective, and is sensitive to the employees' needs, as well as the customers, and in turn it could be a bank known to be a great place to work, and a great place to bank. Sadly, it will never happen.

September 23 2012 at 3:57 AM Report abuse rate up rate down Reply
andrevaugh

I truly feel sorry for the regular working stiffs that through no fault or influence of theirs, will be the ones who are truly getting screwed. Amazing they WANT to cut their IT department. B of A is scum. We know that. But one of the best ATM features that NO OTHER BANK HAS; i.e. depositing checks, AND loose cash - with no envelope, and the options of just a receipt for the transaction, A summary, or a receipt with the image(s) of the check! They have some talent in probably the best department in the whole organization! If they stay in character in showing no loyalty to their customers, there will be no loyalty shown to long-term employees either! Unfortunately, I see last hired will be fired, but I bet how many 25 - 30+ year employees; many will be just on the verge of retirement, will end up on the chopping block and be screwed out of their years of toil.

About the time Bank of America (originally known as the Bank of Italy) started acquiring other banks, there was a reason that the grand daughter of the founder, A.P. Giannini, resigned from the Board of Directors realizing they had no cause to care about customers or employees except to separate them from their cash and property. Without the Bank of Italy, San Francisco's merchants and companies would not have recovered so quickly, and with robust growth. I say FIRE THE TOP BRASS, and take out "Upper-Middle" management first, hire top brass with much less compensation with no "golden parachutes" who are effective, and is sensitive to the employees' needs, as well as the customers, and in turn it could be a bank known to be a great place to work, and a great place to bank. Sadly, it will never happen.

September 23 2012 at 3:57 AM Report abuse rate up rate down Reply
Dirty Harry

I suppose the 16000 have run out of foreclosure letters to sign....

September 22 2012 at 10:10 PM Report abuse +1 rate up rate down Reply
Dirty Harry

I suppose the 16000 have run out of foreclosure letters to sign....

September 22 2012 at 10:09 PM Report abuse rate up rate down Reply
rickets99

The Bush administration was the one that bailed out the banks.

And then theyt also didn't make any new rules to prevent any future bad behavior, including massive layoffs in return for taxpayer help to make up for the bank's malfeasance.

September 22 2012 at 8:21 PM Report abuse +1 rate up rate down Reply
soonernise7455

True story...my daughter wanted to cash her $62 payroll check that was drawn on a BOA account. The bank employee told her there would be a $6 service charge to cash the check. Bloodsucking BOA got told "don't think so!" If this is how they do business, no wonder they're in deep doo doo!

September 22 2012 at 6:44 PM Report abuse +1 rate up rate down Reply

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