Bank of America Job Cuts May Reach 40K
Continues major overhaul in effort to slim down
By Matt Cantor,  Newser User
Posted Sep 9, 2011 8:04 AM CDT
Bank of America's headquarters are shown in Charlotte, NC.   (AP Photo/Chuck Burton, File)

(Newser) – Job cuts at Bank of America could hit a number much higher than earlier reported—four times higher: Executives are now discussing cutbacks to the tune of 40,000 positions, the Wall Street Journal reports. A final decision isn’t expected until later today. The bank is aiming to trim its workforce as part of what it calls “Project New BAC,” which saw the ouster of two executives this week. The bank, which employed some 288,000 in late June, also hopes sell off much of its mortgage business.

The cuts, which follow 6,000 already made this year, would largely hit the 160,000 who work in the bank’s consumer-focused businesses and are expected to take place over three years; some may come through slowed hiring or attrition. Another round of cutbacks will target BoA's commercial banking arm. BoA wants to win investors’ confidence through a smaller operation comparable to that of its competitors, and says its new ideas will make it “a more contemporary, competitive company,” an advisor to the CEO wrote in a memo sent to workers on Sept 1.