BofA (BAC) One of Many Banks Making Job Cuts
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Bank of America (NYSE: BAC) is picking up where other banks are certainly not leaving off.
According to CNBC's Kate Kelly, as well as a press release Monday morning from the bank, BofA is looking to cut costs the old fashioned way: layoffs. Aiming to cut expenses $5 billion annually by 2014, BofA will cut 3500 over the next seveal months, and 30,000 under its "Project New BAC" initiative. While 3,500 jobs is a large amount of workers, the bank currently employs roughly 300,000 globally.
BofA is not the only bank looking to make job cuts. Across the pond, HSBC (NYSE: HBC) recently released plans to layoff around 25,000 jobs by 2013, some of which will be located in the U.S. Additionally, UBS (NYSE: UBS) recently has declared plans to cut its current workforce by 5 percent while Credit Suisse (NYSE: CS) has also released plans to reduce their workforce by roughly 4 percent.
Larger banks such as Goldman Sachs (NYSE: GS) issued a plan to cut cost by $1.2 billion annually which may entail job cuts of nearly 1000 employees. Morgan Stanley (NYSE: MS) announced similar plans which has lead to losses of hundreds of employees in its brokerage area.
Pay and compensation is expected to be down for a majority of the higher employees. CNBC reports that the largest earnings, those once making the eight figure paychecks, may see compensation cuts of up to 35 percent.
BofA shares are 1.6 percent lower Monday afternoon.
According to CNBC's Kate Kelly, as well as a press release Monday morning from the bank, BofA is looking to cut costs the old fashioned way: layoffs. Aiming to cut expenses $5 billion annually by 2014, BofA will cut 3500 over the next seveal months, and 30,000 under its "Project New BAC" initiative. While 3,500 jobs is a large amount of workers, the bank currently employs roughly 300,000 globally.
BofA is not the only bank looking to make job cuts. Across the pond, HSBC (NYSE: HBC) recently released plans to layoff around 25,000 jobs by 2013, some of which will be located in the U.S. Additionally, UBS (NYSE: UBS) recently has declared plans to cut its current workforce by 5 percent while Credit Suisse (NYSE: CS) has also released plans to reduce their workforce by roughly 4 percent.
Larger banks such as Goldman Sachs (NYSE: GS) issued a plan to cut cost by $1.2 billion annually which may entail job cuts of nearly 1000 employees. Morgan Stanley (NYSE: MS) announced similar plans which has lead to losses of hundreds of employees in its brokerage area.
Pay and compensation is expected to be down for a majority of the higher employees. CNBC reports that the largest earnings, those once making the eight figure paychecks, may see compensation cuts of up to 35 percent.
BofA shares are 1.6 percent lower Monday afternoon.
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