Bank of America to eliminate 30,000 jobs
September 13th, 2011 - 11:51 am ICT by IANSNew York, Sep 13 (IANS/EFE) Bank of America Corp., the largest US financial institution by assets, announced Monday a restructuring plan that calls for $5 billion in annual cost reductions by 2014 and the elimination of 30,000 positions.
Project New BAC - the name is based on the company’s stock ticker symbol - aims to make Bank of America “a more focused, leaner, and more efficient company”, according to a press release.
“The company continues to sell non-core business units and assets that don’t support its strategy, thereby strengthening the balance sheet, and improving capital and liquidity,” the statement said.
BAC said it expects much of the staff reduction to be accomplished through attrition.
The Wall Street Journal reported last Friday that BAC was contemplating up to 40,000 layoffs.
Project New BAC got underway last week with a management shakeup that saw David Darnell and Tom Montag named as co-chief operating officers of the giant bank, which currently has 288,000 employees.
BAC is still trying to resolve the problems associated with the 2008 purchase of mortgage lender Countrywide Financial, a move that saddled the bank with massive losses.
In a bid to shore up confidence, BAC reached a deal last month with billionaire investor Warren Buffett, who paid $5 billion to 50,000 preferred shares in the bank.
BAC’s share price has fallen more than 47 percent this year and Monday’s announcement appeared to make little impression on investors, spurring a modest climb of 0.29 percent in the bank’s stock.
–IANS/EFE
rd
- Bank of America to cut 30,000 jobs - Sep 13, 2011
- Spanish royals cut their own pay - Jul 18, 2012
- 15 arrested in anti-austerity protests in Spain - Jul 21, 2012
- Markets continue to hammer Spanish debt - Jul 24, 2012
- SBI expects another Rs.40 billion capital infusion - Aug 23, 2012
- Downward revision of Spain's GDP data - Aug 28, 2012
- Spain's risk premium hits euro-era record - Jul 20, 2012
- Mexican group sells South American hotels for $275 mn - Jul 17, 2012
- Bank of America cancels debit card fees - Nov 02, 2011
- Indian-born Canadian buying major stake in Bank of Ireland - Jul 28, 2011
- Moody's cuts credit ratings of 16 Spanish banks - May 19, 2012
- Spanish economy shrinks - Aug 29, 2012
- Brazilian restaurant to open branches in Mexico, Colombia - Jul 31, 2012
- Pandit says Citigroup now 'a different company' - Aug 10, 2011
- TCS plans Rs.2,300 crore capital expenditure - Aug 05, 2011
Tags: attrition, bank of america, bank of america corp, billionaire, chief operating officers, core business units, countrywide financial, david darnell, financial institution, layoffs, management shakeup, massive losses, mortgage lender, preferred shares, share price, staff reduction, stock ticker symbol, wall street journal, warren buffett, york sep