Bank of America to Cut 30,000 Jobs As Part of $5 Billion Reductions
On Monday, Bank of America announced that part of its plan to cut $5 billion in spending by 2014 includes the elimination of 30,000 jobs.
CEO Brian Moynihan made no mention of layoffs during an investor conference, and the bank says it expects the job losses to occur naturally through attrition and not rehiring when people vacate their positions.
Moynihan’s projected cost reductions also come from changes BofA has made in its consumer and small banking business, as well as credit card and home lending operations.
“We’re a much simpler company than we were 24 months ago,” Moynihan said, adding the company needs to refocus on its core businesses and “get out of the things we don’t need to do.”
The federal agency that oversees Fannie Mae and Freddie Mac is currently suing BofA and 16 other major US financial institutions to recover losses from risky mortgage investments. While Moynihan acknowledged the resolution of the lawsuits “could help move us forward,” he also said the settlements “must be reasonable for the company and the shareholders.”