Bank of America Notes More Job Cuts; Are Layoffs in Your Future?
Posted by Dave Thomas on August 19, 2011 in Business Management, Business News [ 0 Comments ]
In the latest round of layoffs, Bank of America reported this week that it would eliminate some 3,500 jobs in the next few months as it looks to trim its budget and restructure the company.
While some employees at the nation’s largest bank have already gotten the bad news, others will learn the same fate in the weeks and months leading up to Christmas. Yes, Merry Christmas, you’re going to be out of work.
Bank of America Wants to Remain Competitive
According to company CEO Brian Moynihan, he is looking to trim quarterly expenses by $1.5 billion, with the layoffs to be divided among various departments. “I know it is tough to have to manage through reductions. But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully,” Moynihan said in a memo to senior B of A leadership.
With the latest announced round of layoffs and more potential cuts, Bank of America could end up sending some 10,000 employees to the unemployment lines by year’s end. Bank of America, which has some 280,000 employees, eliminated some 2,500 jobs in the first half of the year.
Bank of America, which has taken a major hit from the bursting of the housing bubble and the surge in foreclosures, is also dealing with a lawsuit from American International Group. The suit, involving mortgage backed securities it assembled, has investors fearing that the June settlement could in fact lead to additional litigation, as opposed to resolving it.
Along with the pending job cuts, Bank of America has been selling off a number of items, including its Canadian credit card business and a number of commercial real estate properties.
“While the markets reflect many economic factors we cannot control, we must stay focused on what we can control,” Moynihan remarked in the memo.
When it comes to being in control, is your business doing better now than it was a year ago at this time?
If the answer is no, are layoffs part of your future?
Photo credits: connect.in.com and nydailynews.com