As featured in The Wall Street Journal, Money Magazine, and more!

Bank of America Shedding 6,000 Jobs So Far This Year

This article was written by in Career and Work. 7 comments.

Financial giant Bank of America is eliminating 3,500 more employees. With this addition to the 2,500 already lost this year, the score is up to 6,000. The bank is trimming the workforce to sell of businesses, like global credit cards and life insurance portfolios. The company’s profits overall aren’t growing fast enough, particularly due to not enough demand for loans, and the lack of excessive revenues is leading the bank to cut expenses.

Bank of AmericaBank of America is selling its Canadian credit card business to TD Bank, and will unload its credit card businesses in the United Kingdom and Ireland, as well. Selling these businesses as well as the life insurance portfolios will help raise capital to deal with a lawsuit. Earlier this year, AIG sued Bank of America for mortgage securities fraud. With the cash gained from the sale of these businesses, Bank of America should be able to afford the judgment, assuming the banks settle. Bank of America is also involved in its own class action lawsuit about overdraft fees.

The latest 3,500 terminations may not be the end of the bad news. The Wall Street Journal reports that the final number of jobs lost this year might be closer to 10,000 rather than today’s total of 6,000. Many employees have already been informed of their personal impact, but others will not be asked to pack their desks until later this year.

Photo: MoneyBlogNewz
CNN, Wall Street Journal, FOX Business

Updated October 9, 2016 and originally published August 19, 2011.

Email Email Print Print
About the author

Luke Landes 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 Luke Landes and follow him on Twitter. View all articles by .

{ 7 comments… read them below or add one }

avatar 1 wylerassociate

it’s awful news and I’m wondering if more banks are going to cut jobs in order to cut expenses. I’m really wondering when this economy is going to get better and I think it’s going to be many years down the road. I no longer waste time listening to talking heads who got the 2008 meltdown all wrong.

Reply to this comment

avatar 2 Ceecee

Ouch, every big layoff hurts all. Pretty soon we’ll have no tellers, only machines to deal with. That’s why I use a small community bank.

Reply to this comment

avatar 3 Anonymous

First thing to do is cut top-echelon executive pay by 75%. I didn’t go to business
school and even I know that’s the first thing to do…

Reply to this comment

avatar 4 Cejay

Well said Harm but we know that will never happen. It is the little people the workers who are being hurt. Bank of America is not making the big bucks since they can’t charge a lot of the huge fees they once did, although they charge plenty of fees. I never used Bank of America and never will. I will stick to my small credit union where they know my name and work with me when I need something.

Reply to this comment

avatar 5 skylog

i feel for those who lost their jobs, as well as all those just hanging on. i hope that even more institutions do not follow this same path, but i fear we may end seeing just that. all the super banks that were built in the recent past could end up shedding many, many jobs. things are seemingly going to get worse before they get better.

Reply to this comment

avatar 6 qixx

I’m not sure if i’d rather see these banks lay people off or start charging new fees instead. With new fees i expect they will soon lose customers and have future layoffs. The only real hope is that the fees mean fewer layoffs. I do expect BofA will implement the same fees that Wells Fargo is “testing” any they will likely not hire any of the layoffs back.

Long live the community bank / online bank / credit union.

Reply to this comment

avatar 7 shellye

Agreed – while BofA’s seemingly endless supply of ATM machines make cash withdrawals convenient, they have grown too big for their britches, IMHO. It would be really great to see community banks and credit unions focus more on lending and online banks focus more on providing large numbers of conveniently-located ATMs. I don’t need personal service when I make a cash withdrawal.

Sorry to hear about the job losses. Regardless what you may think about BofA, 3,500 more unemployed people is NOT what this economy needs right now.

Reply to this comment

Leave a Comment

Note: Use your name or a unique handle, not the name of a website or business. No deep links or business URLs are allowed. Spam, including promotional linking to a company website, will be deleted. By submitting your comment you are agreeing to these terms and conditions.