Layoffs Watch '11: Bank Of America

Author:
Updated:
Original:

Remember, back in April, when Bank of America decided it was tired of posting negative profits? And so that people would know they were dead serious about the goal of, rather than losing money, making it, gave their mission a special codename called Project New BAC? And then announced internally that PNBAC, led by 44 executives, would “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"? Well, they did, and here's what Team PNBAC came up with: everyone's getting fired.

Bank of America is cutting 3,500 jobs in the current quarter and working on a broader restructuring that could eliminate thousands of additional positions, people familiar with the situation said. The 3,500 positions are spread across the nation's largest bank by assets, including investment banking and trading, and the cuts are expected to be completed by the end of September. Some employees already have been notified. Thousands of additional reductions are expected as part of an aggressive overhaul known as "Project New BAC," after the Charlotte, N.C., bank's ticker symbol. Executives at the bank still are discussing the possible range of cuts, but one person familiar with the situation said at least 10,000 jobs are likely to be eliminated.

The PNBAC committee would like to thank everyone who put this and other ideas in the suggestion box, including "Ken Lewis revealing 12-month wall calendar" and "Ken Lewis Boone's of the Month Club- members pay me to sample and review," both left by "Definitely Not Ken Lewis."

Bank of America Set To Slice Jobs [WSJ]

Earlier: Bank Of America Needs Help Coming Up With Cost-Cutting, Profit-Generating Ideas
Related: Angelo Mozilo: Bank of America “will reap the benefits of what we have sowed.”

Related