The aforementioned layoffs are said to begin this week. "FYI: BofA cuts are expected to start Thursday, thought to be 20% across the board in IB. All levels affected but with 2nd and 3rd year VPs who are not going to make director, of which there is a glut, hit especially hard. If you're a first year VP (without acct coverage responsibilities), you're probably going into the superpods."
Project New BAC continues, only now that it's worked out some of the initial kinks, management is going to fire people a lot faster that before. Chief Executive Officer Brian T. Moynihan, 52, is relying on expense cuts to improve profit as mortgage losses and regulation squeeze revenue. The earlier phase of his efficiency plan, called Project New BAC, targeted $5 billion in costs and 30,000 jobs...The lender had 275,460 employees at June 30, compared with 278,688 on March 31 and about 288,000 at the end of last year’s second quarter. The number of banking centers in the U.S. fell by 148 in the 12 months ended June 30 to 5,594...The new round of cost cuts will come at a faster rate than the first phase, Chief Financial Officer Bruce Thompson said today on the call. The $3 billion in savings will probably be realized at about $1 billion per year, he said. Moynihan told employees in January that he expected Project New BAC to eliminate a total of $6 billion to $8 billion a year in expenses, Bloomberg News reported. The bank said today it’s on track to realize $1 billion of the cost savings from the first phase by the end of this year. [Bloomberg]