Bank of America will eliminate 3,500 jobs in the months leading up to Christmas as the company is looking to cut costs and restructure, The Wall Street Journal reports. Some employees have already been notified, but the bulk of the layoffs are pending. The layoffs are spread across different departments, "including investment banking and trading, and the cuts are expected to be completed by the end of September." Chief executive Brian T. Moynihan said he wants to cut quarterly costs by $1.5 billion. The New York Times obtained a memo from Moynihan to the company's senior leadership sent out Thursday afternoon that outlined his plans for the cuts: "I know it is tough to have to manage through reductions. But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully."
More cuts are on the way, according to the Times, depending on the results of a serious review the company is doing to restructure and eliminate jobs, titled "Project New BAC." The total number of job cuts could top 10,000 if the review comes out the right way. Earlier this month AIG announced they were suing Bank of America, BoA's stock is down fifty percent since January. It takes a lot to finally drag down the biggest bank in America (true to name!), but this could be the final straw. Moynihan is fighting, though, and refuses to go quietly. In an effort to curb the bank's poor fortune, Moynihan's been holding a "yard sale" of the bank's assets, "raising billions of dollars as it offloads everything from its Canadian credit card business to several commercial real estate properties."
- Investment & Company Information
- Bank of America
- The Wall Street Journal