Bank of America: We are Considering a Whopping 40,000 Job Cut
Bank of America (NYSE:BAC) could cut 40,000 jobs as part its new restructuring plan, the Wall Street Journal reports. While the number of jobs to be cut has not been finalized, Bank of America officials are discussing reducing the bank’s workforce of 280,000 over a period of years, with 40,000 job cuts the top number being considered.
Bank of America officials met Thursday in Charlotte, North Carolina, where the bank is based, to discuss the reductions, and will meet Friday as well to finalize their decisions after five months of work. Investors have been pressuring the company to improve its performance after its stock has halved this year.
Only yesterday it was reported that Bank of America planned to close 600 branches as part of CEO Brian Moynihan’s “Project New BAC,” which would split the company’s banking operations in two, separating consumer from commercial units. Now the Journal is reporting that BofA has proposed job cuts that would exceed the bank’s last big cutback in 2008 when it called for 30,000 to 35,000 job cuts over three years.
Only weeks ago it was reported that Bank of America planned to cut 3,500 jobs by the end of September, and as many as 10,000 jobs as part of a wider review. And earlier this month, the Charlotte Observed reported that the bank’s officials were discussing cutting 25,000 to 30,000 jobs over the next few years.
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On Tuesday, BofA announced a reorganization of its senior management team, which included letting go of consumer bank chief Joe Price and wealth management head Sallie Krawcheck as part of a “de-layering” process.
Banks around the world have been shedding jobs as higher capital requirements and a tough second quarter for trading took their toll, particularly on investment banking units. Over 70,000 planned staff cuts have been announced at U.S. and European banks (NYSE:KBE) this year by other top firms including HSBC (NYSE:HBC), Goldman Sachs (NYSE:GS), Citigroup (NYSE:C), Morgan Stanley (NYSE:MS), UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Barclays (NYSE:BCS), Royal Bank of Scotland (NYSE:RBS) and Lloyd’s (NYSE:LYG).