EMCC European Monitoring Centre on Change

Bank of America

Company/Organisation:
Bank of America

Geographic Location

Country: World

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 288000

Employment Effects

Announcement Date: 09-09-2011
Planned Job Reductions min: 30000
Planned Job Reductions max: 40000
Type of Restructuring: Internal restructuring
Employment Effect Start: 10-09-2011
Foreseen End Date: 30-09-2013

Additional Information

The Bank of America estimates that it will cut up to 40,000 jobs worldwide. This would allow the bank to reduce costs by 15 per cent. As of September 2011, the bank did not disclose where the job cuts will occur. The company is going through a radical reorganisation process and the job cuts will be implemented over the next two years. Part of the employment decrease will be reached by attrition.

Close to 30,000 jobs will be lost in a first phase of the restructuring. The group's retail banking business would face a large reduction in this first phase. The second phase of the reorganisation will affect the investment banking and wealth management branches.