Bank Of America Will Cut 30,000 Jobs

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.”

(Copyright 2011 by The Associated Press. All Rights Reserved.)

  • Tom

    The 2 that left walked away with a very large payout there not hurting but the folks at the bottom will get only a big boot and see ya ! to increase there i’m leaving bonus.LOOK people there not hurting from the foreclosers when a bank is owed 300000.00 lets say it goes into forecloser they auction the house for 78000.00 the motrgge insurence pays for the loss and if there isn’t any insurence the goverment pays the bank the difference so it’s WIN ! WIN ! for the bank and only a loss for the home owner .

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