Bank Of America Needs Help Coming Up With Cost-Cutting, Profit-Generating Ideas

Author:
Publish date:
Updated on

In 2010, Bank of America posted a profit of negative $2.2 billion. For 2011, the goal is to stop losing money and start making it, stat. And it's not just like a wish list, "it would be great if we could do this, if not, no biggie" type goal but a deadly serious one. So much so that it needs a special codename: Project New BAC, an initiative that was unveiled to employees yesterday by Brian Moynihan.

Led by 44 executives (and two consulting firms), PNBAC will "fan out around the company to ask employees low-and high-level for ideas on how they can do their jobs better and how BofA can tweak its financial-product offerings to make the more appealing," in addition to "reducing expenses." While the massive corporation would not normally ask anyone below the management level to weigh in on business, Moynihan is exhausted and to be honest? The top of the food chain has come up with nothing. This is everyone's chance to pitch in, whether you're a CEO emeritus or first year with a voice. Although there will be no cash reward, anyone whose idea** is implemented will receive 100 spirit points.

Bank of America Wants You To Help Fix The Bank [WSJ via BI]

**And don't try suggesting getting rid of cups and introducing mandatory reusable mugs- Moynihan might be fooled but we have long memories.

Related

News

Bank Of America Hoping To Fire Thousands Of Employees In Record Time

Remember Project New BAC, i.e. Bank of America's plan to transform itself from Ken Lewis's house of fun, where everyone went home happy but the concept of making money was less of a focus than keeping the good times coming, to an institution that did things like post profits? The bank has said previously that PNBAC "will result in $8 billion in annual savings by 2015—$5 billion from the first phase and $3 billion from a second phase" and while it stands by those figures and remains committed to cutting as many employees as it takes, some people would like them to be a bit snappier about it. Bank of America is accelerating a broad cost-cutting plan and has set a target of shedding 16,000 jobs by year's end—cuts that would see the company relinquish its title as U.S. banking's largest employer. The proposed year-end total of 260,000 would be the lowest count since 2008 and likely give Bank of America a smaller workforce than JPMorgan Chase, Citigroup, or Wells Fargo...Chief Executive Brian Moynihan is trying to speed the company's transformation into a smaller and more efficient operation as he tries to persuade investors that expenses can be adjusted to compensate for revenue lost to new regulations, an uneven economy and shaky markets. Since becoming CEO in 2010, he has shifted away from a nationwide expansion strategy embraced by his predecessors Hugh L. McColl Jr. and Kenneth D. Lewis, and shed many of the businesses that he considers to be nonessential...Hitting the new staffing target would fulfill a year early Mr. Moynihan's pledge to slash the bank's workforce by approximately 30,000. "If they want to make any headway toward improving profitability," said Sterne Agee & Leach Inc. senior banking analyst Todd Hagerman, "they need to accelerate the timeline." Bank Of America Ramps Up Job Cuts [WSJ]