Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Colombia peace deal will be ‘lasting’, FARC rebel leader tells FRANCE 24

Read more

EYE ON AFRICA

Ghanaian President Mahama concedes defeat to opposition leader Afuko-Addo

Read more

MEDIAWATCH

Trump's TV Career Continues

Read more

THE WORLD THIS WEEK

President Park Impeached, Ghana's High Stakes Election (part 1)

Read more

THE WORLD THIS WEEK

Aleppo Offensive, Renzi Resigns, Trump's Cards (part 2)

Read more

ENCORE!

South Korea: An inside look at the K-pop wave

Read more

#THE 51%

Diving back in: Offering support for French mothers returning to work

Read more

REPORTERS

Chaotic post-hurricane relief efforts in Haiti

Read more

PEOPLE & PROFIT

Cash crunch casualties: India's wedding industry suffers from currency changes

Read more

Americas

Bank of America to axe 30,000 jobs

Text by News Wires

Latest update : 2011-09-12

Bank of America will shed about 30,000 jobs over the next five years in a bid to save $5 billion per year, the bank's CEO disclosed in an address to investors. The bank's stock has lost half of its value this year.

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, North Carolina, 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.”
 

Date created : 2011-09-12

  • GREECE

    Greece unveils €2 billion in cuts to secure EU/IMF bailout

    Read more

  • MARKETS

    European markets tumble over debt concerns

    Read more

  • GREECE

    Greece rules out quitting euro as GDP shrinks further

    Read more

COMMENT(S)