BANK OF AMERICA will cut 30,000 jobs – AP
Bank of America will cut 30,000 jobs
Sep 12, 12:21 PM EDT
By PALLAVI GOGOI
AP Business Writer
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.