The nation’s largest bank is trying to get a wee bit smaller — at least in terms of payroll. A newly uncovered memo reveals that Bank of America plans to cut at least 3,500 jobs in the upcoming months, with the possibility that thousands of additional positions could also be eliminated.
This news comes as BofA faces billions in losses from lawsuits and buy-backs tied to mortgage-backed securities sold by Countrywide Financial, the failed lender that Bank of America purchased at a rock-bottom price in 2008. The bank’s stock price has dropped more than 50% since the beginning of 2011 and the job cuts are just a portion of BofA’s plan to cut expenses.
“I know it is tough to have to manage through reductions,” BofA CEO Brian Moynihan writes in a memo to senior management which obtained by the NY Times. “But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully.”
According to the Times, Moynihan allows for the possibility that there may be more job cuts to come when the bank reviews its progress in the fall. The bank could end up eliminating more than 10,000 jobs. Admittedly, that’s only a small portion of BofA’s approximately 280,000 employees.