Bank of America and Wells Fargo cuts jobs ahead of holiday season


Bank of America and Wells Fargo reportedly started cutting staff last week, ahead of the holiday season.

At one time, layoffs ahead of the holidays would never have occurred. But those days apparently are traveling the same path as defined-benefit pension plans, retiree medical care and other benevolent policies.

Bank of America, which has said it will cut 30,000 jobs over the next few years, confirmed last week that cuts have begun.

“Bank of America continually reviews and assesses the efficiency and effectiveness of our operations. As a result, we have made the difficult but necessary decision to eliminate certain staff support functions in technology and operations,” the bank said in a statement to TheStreet.com.

A BofA spokeswoman said Monday that the bank isn't providing details on layoffs such as their location or the lines of business affected.

It almost makes one long for the days of yesteryear (about a decade ago, for those counting at home) when BofA insiders said no layoffs would ever be made on Dec. 7 under the leadership of former Marine Hugh McColl, given the date’s significance in World War II.

Wells Fargo plans to cut technology and operations jobs by year-end as part of its Project Compass program seeking to shed $1.5 billion of quarterly operating expenses, Reuters reported, noting that the bank’s tech hubs are in San Francisco, Charlotte, Minneapolis and Scottsdale, Ariz.

The San Francisco bank told employees in a server-management group employing 500 that 25 staff will be cut and 30 open positions won’t be filled, Reuters said.

Wells still isn’t giving much detail on the full scope of its plans for layoffs.

BofA, Wells and other big banks are eager to squeeze costs from their operations as they cope with anemic loan demand and a decline in fee revenue.

Source: Biz Journals