Cost-cutting has been the name of the game on Wall Street lately and no where is that more true than at Bank Of America.
The bank is speeding up those efforts and by the end of 2012 it will have 260,000 employees and likely fewer than Wells Fargo, Citi and JPMorgan Chase, according to a report from The Wall Street Journal.
The job cuts are no surprise. BofA chief Brian Moynihan announced a major cost-cutting plan last year dubbed Project New BAC. Under the program Moynihan said 30,000 jobs would be slashed saving the bank $8 billion by 2015–that includes the 16,000 cuts outlined by the Journal today.
Read more: http://www.forbes.com/sites/halahtouryalai/2012/09/20/why-bank-of-americas-16000-job-cuts-are-necessary/
BofA isn’t the only bank cutting jobs but the size of its efforts are by far the greatest. Citi, Goldman Sachs, Morgan Stanley
and many financial firms in Europe are trimming the fat as well but
it’s BofA that’s been under the most pressure by shareholders to make
significant changes.
Moynihan had little choice last year when he announced the major overhaul. He and his bank were at the center of just about every negative bank story thanks to its Countrywide business and depressed stock price. The pressure was so enormous that two days after Bank of America shares plummeted 20% Moynihan faced skeptical shareholders head-on in a painful Q&A session hosted by Bruce Berkowitz of Fairholme Capital Management.
The nation’s second largest bank will kill 16,000 jobs by the end of the year as part of an ongoing cost saving initiative.Moynihan had little choice last year when he announced the major overhaul. He and his bank were at the center of just about every negative bank story thanks to its Countrywide business and depressed stock price. The pressure was so enormous that two days after Bank of America shares plummeted 20% Moynihan faced skeptical shareholders head-on in a painful Q&A session hosted by Bruce Berkowitz of Fairholme Capital Management.
The bank is speeding up those efforts and by the end of 2012 it will have 260,000 employees and likely fewer than Wells Fargo, Citi and JPMorgan Chase, according to a report from The Wall Street Journal.
The job cuts are no surprise. BofA chief Brian Moynihan announced a major cost-cutting plan last year dubbed Project New BAC. Under the program Moynihan said 30,000 jobs would be slashed saving the bank $8 billion by 2015–that includes the 16,000 cuts outlined by the Journal today.
Read more: http://www.forbes.com/sites/halahtouryalai/2012/09/20/why-bank-of-americas-16000-job-cuts-are-necessary/
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