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BofA to slash 16,000 jobs by end 2012
Source: Agencies |
September 21, 2012, Friday
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Print Edition
Print Edition
BANK of America Corp is planning to cut 16,000 jobs by year end as it speeds up a company-wide cost-cutting plan amid falling revenues, the Wall Street Journal said on Wednesday.
The job cuts would put the second-largest US 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 & Co and Wells Fargo & Co.
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 spokesman Larry Di Rita declined to comment. The bank had 275,460 employees at the end of the second quarter.
Under Project New BAC, the bank has said it planned to tirm US$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 may shave US$3 billion in annual expenses by mid-2015 by making undisclosed cuts in capital markets, commercial banking and wealth management.
In the second quarter, cost savings from the first phase were running at an annual pace of US$970 million, behind a goal of US$1 billion, the Journal said, citing the document.
BofA is one of many financial companies slashing thousands of jobs amid new rules and a tepid economy that are crimping revenue.
The job cuts would put the second-largest US 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 & Co and Wells Fargo & Co.
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 spokesman Larry Di Rita declined to comment. The bank had 275,460 employees at the end of the second quarter.
Under Project New BAC, the bank has said it planned to tirm US$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 may shave US$3 billion in annual expenses by mid-2015 by making undisclosed cuts in capital markets, commercial banking and wealth management.
In the second quarter, cost savings from the first phase were running at an annual pace of US$970 million, behind a goal of US$1 billion, the Journal said, citing the document.
BofA is one of many financial companies slashing thousands of jobs amid new rules and a tepid economy that are crimping revenue.
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