Layoffs Watch '16: Bank of America Not Done Axing People

Brian Moynihan casually mentioned future cuts to shareholders today.
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Laying off five-figures worth of employees in 2015 might've seemed like enough for BofA to take a nice long break from cutting people but, according to Brian Moynihan, there'll be more where that came from. Have your boxes ready.

Bank of America Corp. has more expenses to cut as it weathers another year of low interest rates, Chief Executive Officer Brian Moynihan told shareholders. Profitability at the bank, which generates about half its revenue from interest income, has been weighed down as the Federal Reserve keeps benchmark interest rates at 0.5 percent. Rates have been below 1 percent for nearly a decade. “What do you do? In that environment, you drive down expenses,” Moynihan, 56, said Wednesday at the bank’s annual meeting in Charlotte, North Carolina. “We should run better.” Bank of America cut more than 10,000 jobs in 2015, and Moynihan has said he will eliminate more this year as the industry gets squeezed by sluggish trading and rising losses on loans to energy companies.

Bank of America Still Has Expenses to Trim, CEO Moynihan Says [Bloomberg]


Layoffs Watch '12: Bank Of America

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]