Bank of America will cut 30,000 jobs# Stock
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NEW YORK (AP) -- Bank of America will cut about 30,000 jobs over the next
few years in a bid to save $5 billion per year. The cost-cutting drive is
part of a broader effort to reshape and shrink the nation's largest bank as
it copes with fallout from the housing bust.
The bank announced the job cuts in a statement shortly after Brian Moynihan,
the bank's CEO, disclosed the cost-saving goals in an address to investors
in New York. "We're a much simpler company than we were 24 months ago,"
Moynihan said.
Bank of America stock was up 2 cents at $7 at midday. The stock has lost
half its value this year, largely over problems related to poorly-written
mortgages it acquired with its 2008 purchase of Countrywide Financial Corp.
The bank faces lawsuits from investors and regulators over the sales of
mortgage-backed securities that lost value after the housing boom collapsed.
The job cuts follow a revamp of the bank's top management team last week.
Two senior executives, wealth management head Sallie Krawcheck and head of
consumer banking Joe Price, left the bank. The bank also elevated commercial
banking chief David Darnell and investment banking head Tom Montag to co-
chief operating officers, reporting to Moynihan.
The latest job cuts will lead to a 10 percent reduction in the bank's work
force of 288,000. The cuts come on top of 6,000 positions the bank has
already eliminated through the third quarter of this year.
The Charlotte, N.C. company said it expects many of the cuts to come through
attrition and eliminating unfilled positions. The bank says the number of
job cuts isn't fixed, but that it expects they will total 30,000. It hopes
to save $5 billion in annual costs through 2014 under a cost-cutting plan
dubbed internally as "Project New BAC."
few years in a bid to save $5 billion per year. The cost-cutting drive is
part of a broader effort to reshape and shrink the nation's largest bank as
it copes with fallout from the housing bust.
The bank announced the job cuts in a statement shortly after Brian Moynihan,
the bank's CEO, disclosed the cost-saving goals in an address to investors
in New York. "We're a much simpler company than we were 24 months ago,"
Moynihan said.
Bank of America stock was up 2 cents at $7 at midday. The stock has lost
half its value this year, largely over problems related to poorly-written
mortgages it acquired with its 2008 purchase of Countrywide Financial Corp.
The bank faces lawsuits from investors and regulators over the sales of
mortgage-backed securities that lost value after the housing boom collapsed.
The job cuts follow a revamp of the bank's top management team last week.
Two senior executives, wealth management head Sallie Krawcheck and head of
consumer banking Joe Price, left the bank. The bank also elevated commercial
banking chief David Darnell and investment banking head Tom Montag to co-
chief operating officers, reporting to Moynihan.
The latest job cuts will lead to a 10 percent reduction in the bank's work
force of 288,000. The cuts come on top of 6,000 positions the bank has
already eliminated through the third quarter of this year.
The Charlotte, N.C. company said it expects many of the cuts to come through
attrition and eliminating unfilled positions. The bank says the number of
job cuts isn't fixed, but that it expects they will total 30,000. It hopes
to save $5 billion in annual costs through 2014 under a cost-cutting plan
dubbed internally as "Project New BAC."