News

Bank of America to eliminate 30,000 jobs

September 12, 2011

CNN Money yesterday reported that Bank of America plans to eliminate 30,000 jobs as part of a plan to save $5 billion.

The announcement came after an investor conference in New York during which BofA's CEO Brian Moynihan outlined the bank's strategy.

According to the article, the bank said it expects a "significant portion" of the staff reduction to occur through attrition and the elimination of unfilled positions. BofA had a total of 287,000 employees as of June 30.

In the first phase of the plan, dubbed "Project New BAC," BofA said it expects to save $5 billion, or 18 percent of its projected $27 billion in overall costs, through 2014. The second phase of cost reductions will begin in October and run through 2012.

"We're a much simpler company than we were 24 months ago," Moynihan said.

The company's stock has taken a hit this year, falling about 48 percent from January.

Moynihan said the company will continue cutting costs in an attempt to refocus its core businesses, but he declined to provide details on future reductions.

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