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Political Economy
Posted at 09:46 AM ET, 09/09/2011

Report: Bank of America job cuts may affect 40,000 workers


Bank of America is working on restructuring plans that will cut more jobs, The Wall Street Journal and Bloomberg News reported. (Chuck Burton - AP)

As part of its previously announced restructuring plan, Bank of America may cut up to 40,000 jobs, The Wall Street Journal reported.

Bloomberg News also said the nation’s largest bank is weighing cuts, though that report suggested the cuts would total around 29,000 jobs.

The reports said that top executives will meet soon at the company’s Charlotte headquarters to craft details of the plan and settle on a final number for the job cuts.

Eliminating jobs is part of a broader initiative by Chief Executive Brian Moynihan to streamline and simplify the bank’s operations.

The cuts wouldn’t be the first that Bank of America has undertaken this year. Under a program called “Project New BAC” that the firm began earlier in 2011, executives have already axed 6,000 jobs.

There have been other shake-ups too. The bank announced on Sept. 6 that two top executives would leave the firm as part of Moynihan’s effort to trim costs.

The years following the financial crisis of 2008 have been challenging for Bank of America. It continues to be saddled with billions in toxic mortgages, many of which stem from its purchase of Countrywide Financial. (For a story late last year, an analyst told the Post, "Countrywide was a garbage bin. All they did was make loans they could to whomever they could at whatever rate they could. If Bank of America hadn't made this acquisition, they would have problems, but nothing remotely close to what they have now.")

Despite its struggles, at least one key investor recently gave Bank of America his vote of confidence. Billionaire Warren Buffett invested $5 billion in the bank in August.

Related stories:

Moynihan aims to make Bank of America ‘smaller, more focused’

Buffett bolsters Bank of America

By  |  09:46 AM ET, 09/09/2011

 
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