Bank of America will eliminate the jobs of up to 30,000 staff as it attempts to strengthen its balance sheet and build up capital by cutting staff and shedding non-core business units, the firm said in a statement today.
The firm expects to eliminate unfilled roles and lay off staff, amounting to as many as 30,000 jobs cut. The plan will save Bank of America $5 billion per year through 2014, the firm says.
Project New BAC, as the firm is calling its strategic restructuring plan, is CEO Brian Moynihans plan for the company to become more focused, leaner and more efficient, according to the statement.
Along with laying off staff, Bank of America also plans to shed business units: The company continues to sell non-core business units and assets that dont support its strategy, thereby strengthening the balance sheet, and improving capital and liquidity, the statement said.
The moves were the first phase of the restructuring plan. The second phase, reviewing businesses not reviewed in phase one, begins next month and lasts through March 2012. Phase two includes a review of Bank of America Merrill Lynch, the firms wealth management division. Bank of America bought Merrill Lynch in 2008 at a significant discount on its prior-year share value after risky collateralized debt obligations slashed the value of its mortgage portfolio after the Lehman Brothers collapse.
(CG)