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Bank of America may fire 40,000 employees

Last updated on: September 9, 2011 13:55 IST

Bank of America may fire 40,000 employees

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Officials of United States financial giant Bank of America Corp have discussed slashing about 40,000 jobs under the first phase of a proposed restructuring exercise, according to a media report on Friday.

"Bank of America Corp (BofA) officials have discussed eliminating roughly 40,000 positions during the first wave of restructuring that chief executive Brian Moynihan is expected to discuss Monday," The Wall Street Journal reported, citing a person familiar with the plans.

The numbers of job cuts are not final and could change.

The restructuring would reduce the bank's workforce over a period of years, the report added.

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Photographs: Reuters
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Moynihan is trying to bolster profits amid growing concerns about BofA's exposure to the slowing United States economy and a slew of mortgage-related losses and lawsuits.

BofA's non-interest expenses of $22.9 billion in the second quarter were up 32 per cent vis-a-vis the year-ago period. The figure includes employment, occupancy, marketing and other business costs.

The banking entity's shares have been on a downslide and have lost nearly 50 per cent so far this year, sinking to levels last seen in early 2009 when the financial crisis was still raging.

Last month, the WSJ had said BofA would slash 3,500 jobs in the current quarter and is working on broader restructuring that could eliminate thousands of additional positions.

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Photographs: Reuters
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The reductions come even as other financial firms prune their workforces or cut expenses elsewhere. HSBC Holdings Plc plans to cut about 30,000 jobs worldwide by the end of 2013.

Bank of America's last big cutback came in 2008 with the announcement of plans for 30,000 to 35,000 job cuts over three years.

The move was triggered by the economic downturn and the takeover of securities firm Merrill Lynch & Co.


Photographs: Reuters
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