Bank of America Corp.'s plan to eliminate roughly 3,500 jobs this quarter marks just the start of an efficiency drive that could reduce the company's global workforce by about 10%, according to a report in the Charlotte Observer.
Citing sources familiar with BofA's plans, the newspaper said over the weekend that company executives are discussing plans to cut as many as 25,000 to 30,000 jobs over the next several years. At June 30, the company had about 288,000 employees worldwide, including about 15,000 in its hometown of Charlotte.
BofA cut 2,500 jobs earlier this year as part of a broader effort to improve its efficiency and preserve capital and it expects to eliminate another 3,500 jobs this quarter, primarily in its mortgage and consumer banking lines of business. Later this year and early next year, the company intends to identify potential cuts in its capital markets, wealth management and commercial banking units, the Charlotte Observer said.
Senior management will meet early this month to finalize long-term plans, according to the newspaper, and Chief Executive Officer Brian Moynihan is expected to provide specifics in the company's third-quarter conference call with analysts and investors.