Bank of America to cut 30,000 jobs as part of major restructuring effort

Bank of America to cut 30,000 jobs as part of major restructuring effort

2011-09-13 08:20:43 GMT+7 (ICT)

CHARLOTTE, NORTH CAROLINA (BNO NEWS) -- Bank of America Corp. on Monday announced that approximately 30,000 employees will be cut during the first phase of its management reorganization.

The announcement was made during the company's presentation at the Barclays Capital 2011 Global Financial Services Conference during which Bank of America said its Project New BAC will be focusing "all of its resources on serving individuals, companies, and institutional investors."

In its major restructuring effort, the bank said it would be aligning its businesses with customer groups by removing a layer of management and streamlining the company.

As it nears the end of the first phase of a comprehensive review of its consumer businesses and support functions, employment levels in the areas under review during the phase are expected to be reduced by approximately 30,000 jobs over the next few years.

The company said it also expects that attrition and the elimination of appropriate unfilled roles will be a significant part of the anticipated decrease in jobs. "This reorganization follows on work that started in January 2010. The company continues to sell non-core business units and assets that do not support its strategy, thereby strengthening the balance sheet, and improving capital and liquidity," the company stated.

According to the bank, the full implementation of approved ideas in Phase I is expected to lead to net expense reductions of $5 billion per year by 2014, on a baseline of $27 billion in annual expenses for the areas the company reviewed. 

New BAC Phase II is scheduled to begin in October and continue through March 2012, and cover those businesses and operations that were not reviewed in Phase I. 

The Bank of America, which was founded in 1904 and has relationships with nearly all U.S. Fortune 500 companies, serves approximately 58 million consumer and small business relationships in the U.S. with approximately 5,700 retail banking offices and approximately 17,800 ATMs, having some 30 million active users in online banking.

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