Bank of America Corp. is cutting 3,500 jobs this quarter, and plans to cut many more in the quarters ahead, as part of a drastic plan to overhaul the company. A source tells the Wall Street Journal that the company will probably dispose of at least 10,000 jobs before it’s finished—which would amount to 3.5% of its work force.
“I know it is tough to have to manage through reductions,” CEO Brian Moynihan said in a memo to managers last night. “But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully.” The cuts are part of Moynihan’s “Project New BAC,” an effort to boost the company’s profits and stock price, which is down 47% on the year. The project will also close nearly 750 branches in the coming years. (Read more Bank of America stories.)