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Bank of America Cutting More Jobs

This article was written by in Career and Work. 13 comments.


After Bank of America investors have endured a year of suffering, Bank of America employees will start to feel the company’s troubles. Although the bank already announced significant layoffs this year, hot on the heels of a $5 billion boost from Warren Buffett, an overdraft fee lawsuit settlement, and a settlement for a lawsuit pertaining to mortgage-backed securities, the CEO of BofA, Brian Moynihan, announced the company will shed 30,000 jobs between October 2011 and December 2012.

For now, Bank of America is the largest bank in the United States. This move is a reflection of the financial industry, which, in turn, is a reflection of the stock market, with financial companies being a strong component of indexes. The stock market is a partial reflection of the broader economy.

Bank of AmericaWhile not currently in a technical recession, this is just another piece of bad news in addition to the economic woes currently affecting us. Some have a more direct effect than others; high unemployment rates hurt the wallet for many families, while the European debt crisis seems to be somewhat removed from Americans’ daily financial experiences. Layoffs at Bank of America will obviously affect families who rely on BofA salaries and benefits, but it is a signal that economic turmoil may be around for longer than we had hoped.

We may be entering a period where companies want to avoid being “too big to fail.” After deregulation and a regulatory culture that permitted financial institutions to grow without restriction, companies wary of the consequences of being so large in an industry that still bears high levels of systemic risk may find it better in the long run to fly low — the “Careful, Icarus” approach to business growth.

So far this year, here’s the timeline for Bank of America job cuts:

I expect more announcements will come as the financial industry continues to struggle to find footing in the post-recession economic environment.

CNN Money

Published or updated September 12, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 13 comments… read them below or add one }

avatar Ken

Hi, Great information and blogs. I was wondering if you could please send me a current code for the $200 back when opening a business account with $500 in it, with Chase Bank.
Thank you,
Ken

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avatar Luke Landes ♦127,455 (Platinum)

Hi Ken,

Keep checking the Chase checking bonus page. I update this whenever I receive new codes.

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avatar Money Beagle

The economy will not recover without healthy banks. Everybody wants to see banks punished and for some to fail, but allowing this would be counter-productive to ever seeing a meaningful recovery. Be careful what you wish for :)

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avatar lynn ♦155 (Cent)

I disagree. If you are looking for healthy banks, then the Therory of Evolution should prevail. Wait it out then be secure in knowing the bank you choose is secure with ethical standards.

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avatar Ceecee ♦53 (Newbie)

If it’s not bad news from Europe, it’s bad news from the banks. We can’t live with banks and we can’t live without them. I can see where they could operate with less staffing, as more banking is done online. That being said, if customers don’t get good service, they’ll go elsewhere.

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avatar Briana @ Prairie EcoThrifter

Things really start getting scary when big banks are laying people off. I really hope things get better (despite my personal beef with Bank of America). 30,000 job cuts? That’s so many people :(

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avatar Pat S

I saw this on the news today and am sad for those employees who will be affected. Hopefully things will turn around soon!

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avatar Cejay ♦1,521 (Half-Dollar)

It just goes to show that things are still bad. i really dislike BoA but I feel for these families

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avatar Investor Junkie

This will do wonders for the unemployment number.

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avatar wylerassociate ♦162 (Cent)

I feel bad for the 30k people who work for bank of america & will lose their jobs as well as customers like myself who are going to see local branches close as part of downsizing. But I see BoA cutting more jobs as well.

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avatar shellye ♦107 (Cent)

As much as I dislike B of A, I hate to see 30k people losing their jobs. I’m guessing they will increase automation to make up for the shortfall in service, but that doesn’t put people back to work.

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avatar Cherleen @ My Personal Finance Journey

I only have one thing in mind. They are laying off their employees in the United States because they are outsourcing the jobs to save on expenses and earn more profit.

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avatar qixx ♦1,890 (Half-Dollar)

With the quality of service at BofA around here, then fewer people might just improve the quality of service. I just hope that they keep those that provide service to customers and are getting rid of the rest. If they get rid of those that were quality people then i’ll fee bad for that part.

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