Bank of America to lay off 3,500 workers

August 19, 2011

Bank of America, which has been battered in the stock market this year and beset by problems related to bad mortgages, plans to lay off 3,500 workers in the current quarter with perhaps thousands more pinks slips to come.

Spokesman Scott Silvestri said Friday the cuts will affect most areas of the bank. “It’s part of the regular assessment of business that takes place,” he said. “At times, [the bank] makes adjustments to meet the opportunities in the marketplace.”

The marketplace has been particularly unkind to Bank of America lately. Its share price has taken a beating in recent weeks and has fallen nearly by half this year. The bank has far more capital on hand than before the financial crisis, but it continues to struggle with litigation and other problems related to its massive portfolio of troubled loans, many taken on when it purchased Countrywide in 2008.

The company already has laid off 2,500 workers this year, Silvestri said. After the new round of layoffs, the bank could make additional cuts since an initiative announced earlier this year, dubbed “Project New BAC,” had dozens of executives fan out across the company to seek ways to lower expenses and increase revenues.

Brady Dennis is a national reporter for The Washington Post, focusing on food and drug issues.
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August 19, 2011

Bank of America, which has been battered in the stock market this year and beset by problems related to bad mortgages, plans to lay off 3,500 workers in the current quarter with perhaps thousands more pinks slips to come.

Spokesman Scott Silvestri said Friday the cuts will affect most areas of the bank. “It’s part of the regular assessment of business that takes place,” he said. “At times, [the bank] makes adjustments to meet the opportunities in the marketplace.”

The marketplace has been particularly unkind to Bank of America lately. Its share price has taken a beating in recent weeks and has fallen nearly by half this year. The bank has far more capital on hand than before the financial crisis, but it continues to struggle with litigation and other problems related to its massive portfolio of troubled loans, many taken on when it purchased Countrywide in 2008.

The company already has laid off 2,500 workers this year, Silvestri said. After the new round of layoffs, the bank could make additional cuts since an initiative announced earlier this year, dubbed “Project New BAC,” had dozens of executives fan out across the company to seek ways to lower expenses and increase revenues.

Brady Dennis is a national reporter for The Washington Post, focusing on food and drug issues.
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