Bank of America said Monday that it would slash about 30,000 jobs, a little more than 10 percent of its workforce, over the next few years in an effort to streamline the nation’s largest bank. The firm also plans to trim $5 billion in costs by 2014.
“We don’t have to be the biggest company out there, we have to be the best,” chief executive Brian Moynihan said Monday during a speech at an investor’s conference in New York. “We can get out of things we don’t need to do, make the company leaner, more straightforward, more drive,.” he said, according to a Bloomberg report.
The bank’s stock held steady after Moynihan’s speech, ticking up 0.01 percent to $6.99 per share around 1 p.m.
Bank of America has already had two rounds of job cuts in 2011, though numbers of layoffs were significantly smaller. In August, the firm said it planned to lay off 3,500 workers after axing 2,500 positions earlier this year.
The job cuts are part of an effort the bank has dubbed “Project New BAC,” which aims to fortify and simplify the company as it struggles under the weight of billions of dollars of toxic mortgages.
The changes will affect rank-and-file employees and some executives. Late last month, Bank of America announced that two of its top executives were departing and that two others were being promoted to serve as co-chief operating officers.
Moynihan said Monday that the project’s first phase concentrated on consumer banking, home loans and technology. The next phase, to begin in October, will look closely at the bank’s other businesses and operations, he said.