Bank of America Could Slash 40,000 Jobs Under Restructuring Plan
It’s becoming quite possible that Bank of America Corp (BofA) officially will fire nearly 40,000 employees as part of a new restructuring plan. According to rumors CEO Brian Moynihan will announce the layoffs on Monday.
The layoffs will not occur all at one time, instead they will be spread out over several years and there’s a chance the number being terminated could change before Monday’s announcement.
According to sources close to the deal, Moynihan is attempting to bolster profits during a slowed US economy, specifically to offset mortgage-related losses and various lawsuits. The company’s non-interest expenses of $22.9 billion in the second quarter were 32% higher than the same period last year.
BofA shares have taken a pounding in 2011, down nearly 50% to levels last seen in early 2009.
Jobs will likely be cut from various BofA positions globally, although at this time how many U.S. jobs will be lost is still unknown.
At the end of June the company employed 288,000 full-time employees and jobs were expected to be lost from that huge pool of individuals when the company announced “Project New BAC” the company’s plan to cut expenses and people.
In the meantime Bank of America continues to sell off parts of the company, specifically sectors that are not considered part of their “core assets.”
What do you think of Brian Moynihan’s plan to cut nearly 15% of his banks workforce?