Bank of America Begins To Axe Thousands


Who's next ? Everyone - or that's how it certainly looks.

Now (as expected) it's Bank of America's turn.

The bank has confirmed that, under what is understood to be known as 'Project New BAC', an additional 3,500 jobs will go this quarter (taking the year-to-date total to 6,000 and representing around 2% of Bank of America's global workforce). The Wall Street Journal, however, is reporting that the final tally of 2011 job losses could hit 10,000.

The job cuts will be made across the board, although with a heavy bias towards the consumer-banking operation, which is looking to achieve cost savings of around 20%.

Around 600 jobs are thought likely to go in investment banking, mostly in the US. The selection criteria will be  predominently performance-related.

Although some staff have already been notified of their fate, the vast majority will not be told until September / October. Line managers are apparently busy compiling lists of staff they will need to let go.

One banker told Here Is The City: 'The only surprise here is that the job losses aren't a lot more. It seems that CEO Brian Moynihan is hoping that things pick up going into the fourth-quarter and he can be spared laying more staff off. There will be a lot of nervous people working at Bank of America, though, and unfortunately I can only see the uncertainty persisting for several more months'.

Sources - Bloomberg, The Financial Times, The Wall Street Journal

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