Friday, September 9, 2011


BofA discussing about 40,000 job cuts: report

BANGALORE (Reuters) - Bank of America Corp officials have discussed slashing roughly 40,000 jobs during the first wave of a restructuring, the Wall Street Journal said, citing people familiar with the plans.
The number of job cuts are not final and could change. The restructuring aims to reduce the bank's workforce of 280,000 over a period of years, the Journal said.
BofA could not immediately be reached for comment by Reuters outside regular U.S. business hours.
The Journal said BofA executives met Thursday at Charlotte, North Carolina, where the bank is headquartered, and will gather again Friday to make final decisions on the reductions, putting the finishing touches on five months of work.
Investors are pressing BofA to improve its performance after it lost money in four of the last six quarters and its stock has fallen by half this year.
The Journal said the proposed job cuts may exceed BofA's last big cutback in 2008 when it called for 30,000 to 35,000 job cuts over three years. That move was triggered by an economic slowdown and the planned takeover of securities firm Merrill Lynch & Co.
Earlier this month, the Charlotte Observer reported that BofA executives were discussing plans to potentially shed 25,000 to 30,000 jobs over the next several years.
BofA had earlier planned to cut 3,500 jobs, its Chief Executive Brian Moynihan had said in a memo to staff on August 18, as it tries to come to grips with $1 trillion of problem home mortgages.
BofA announced a far-reaching reorganization of its senior management team on Tuesday, which included the departure of consumer bank chief Joe Price and wealth management head Sallie Krawcheck.
Banks are shedding jobs worldwide as stricter regulations and a tough second quarter for trading income take their toll on investment banking units in particular.
More than 70,000 staff cuts have been announced this year or are reported to be in the works at U.S. and European banks, some of them to be lost over three or four year programs.
(Reporting by Sakthi Prasad in Bangalore; Editing by Anshuman Daga)


8:20 AM on September 9, 2011
I wish the public would all pull their money out of this horrible bank and quit using them. A protest like this by the American public would wake these companies up. Actually, the govt should just take the bank over. It is corrupt, and dysfuntional, and does and gives lousy service anyway. All it does it come up with new ideas on how to rip customers off.

Score: 7


8:21 AM on September 9, 2011
I think our government suing the banks will result in a longer housing crises. The government asked for it now they don't like the result. Washington only likes government and union jobs!

Score: 14


8:23 AM on September 9, 2011
What? The service sector is cutting jobs? I thought the service sector was our future? Guess not. Party on America!

Score: 8


8:30 AM on September 9, 2011
actully, my guess is they are about to fail. With Buffetts phony 5 billion dollar investment, which the govt was probably behind, huge layoffs because they can't afford the employees anymore, millions and millions of dollars in law suits which is just the tip of the iceberg of yet to come, they are reeling. But, my guess is the 5 billion infusion, along with steep layoffs is a sign of a struggling company, not just restructuring.

Score: -5


8:31 AM on September 9, 2011
And now the government wants to sue Bank of America so the remaining jobs are in jeopardy. Obama better go back and ask for a few billion more to cover the thousands of bank workers who are likely to get tossed if the government's law suit moves forward. Good news in America has been permanently suspended until we can get the incompetent Obama out of office.

Score: -10


8:52 AM on September 9, 2011
Thanks Obama!

Score: 3


9:01 AM on September 9, 2011
Americans continue to bash Obama's ideas. They think things will improve if we just fire a few million teachers, doctors, nurses, and scientists. Just cut taxes and everything will be fine, they say. What a bunch of fools. Americans are getting what they deserve.

Score: 2


9:11 AM on September 9, 2011
Well citizens, it is just a sample of things to come. All of the big banks and most of the small ones are hanging on by a whisper and a prayer, waiting to see who pushes the first domino, the US or Europe. When Greece finally defaults or Germany says will begin. Where is your money tonight?

Score: -1


9:16 AM on September 9, 2011
8:52 AM on September 9, 2011

Thanks Obama!
Yes, the logical conclusion is that this is Obama's fault. Everyone knows he was in office when the banking and mortgage crisis hit...oh wait, a Con was in office...a weasely little Shrub to be exact. But wait, wasn't a Dem in office just prior to the crisis to screw things up? What did you say? Shrub had been in office for SEVEN years of poor Con "leadership prior to the crisis?

It can't be so...

Score: -3

Pat S.

9:17 AM on September 9, 2011
Nice work by DOJ. Sue all the banks and watch them unload their employees. Yet another example of Government run amuk. Downsize Government not private industry - lousy bank or not!

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