More Evidence of Economic Recovery: Bank of America Will Eliminate 30,000 Jobs, Largest Cut by a U.S. Company This Year
September 13th, 2011Via: AP:
Bank of America is slashing 30,000 jobs as part of an effort to reverse a crisis of confidence among investors. It’s the largest single job reduction by a U.S. company this year.
What CEO Brian Moynihan is trying to do is nothing less than save the nation’s largest bank. Investors have cut the bank’s market value by half this year. The bank is facing huge liabilities over soured mortgage investments and concerns over whether it has enough capital to withstand more financial shocks.
The cuts, which affect Bank of America’s consumer businesses, represent 10 percent of the Charlotte, N.C. bank’s work force. The bank said it hopes the cuts and other measures will result in $5 billion in annual savings by 2014. The bank has already cut 6,000 jobs this year. The bank also said it would look for cost savings at its other businesses in a six-month review that will begin next month.
“It’s as if someone has hit the panic button,” said Bert Ely, president of banking consultant Ely & Co.
