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Neon Tommy - Annenberg digital news

Bank Of America To Cut 2,000 Jobs

Catherine Green |
May 1, 2012 | 10:29 a.m. PDT

Executive Producer


Bank of America Plaza in Downton L.A. (Catherine Green/Neon Tommy)
Bank of America Plaza in Downton L.A. (Catherine Green/Neon Tommy)
Bank of America announced Tuesday the company will cut 2,000 jobs in investment banking, commercial banking and "non-U.S. wealth-management units" according to insiders.

The Wall Street Journal reported this downsizing comes just 3 years after significant expansion in the 2009 purchase of Merrill Lynch & Co.

From The Wall Street Journal:

The reductions are significant because of whom they target: the high-earning employees whose efforts helped Merrill Lynch account for the bulk of Bank of America's profit since the financial crisis.

The cuts come on top of a plan announced last year that will see Bank of America eliminate 30,000 jobs over three years in its consumer banking divisions. The bank employed 278,700 people as of March 31.

The move is the latest effort by Chief Executive Brian Moynihan to show investors he can bring expenses under control at a time of sluggish U.S. growth and revenue-reducing federal regulations. Personnel expense at Bank of America rose 17% between 2009 and 2011—a period in which revenue dropped 22%.

Bank of America is also considering significant structural changes, pooling junior employees across sectors to adapt to changing priorities of the company.

One of several corporate targets for Tuesday's May Day demonstrations, Bank of America is now ranked second in global investment-banking revenue. Higher-ups say growth oversees continues to be a main priority as the banking giant undergoes its latest changes.

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