Bank of America starts layoffs in technology and operations

Bank of America Corp technology and operations employees are being notified about layoffs this week as part of the company's ongoing efficiency initiative, a bank spokeswoman said on Tuesday.

The affected employees are in staff support functions, bank spokeswoman Laura Hunter said. The job cuts are part of the 30,000 positions the bank has said it will eliminate over the next few years as part of Project New BAC, she said.

The first phase of the efficiency program, launched in April, is focused on consumer banking and support areas of the company. The Charlotte, North Carolina-based bank has about 100,000 technology and operations employees in 40 countries. At the end of the third quarter, the bank had a total of 288,739 employees.

Bank of America Chief Executive Officer Brian Moynihan said on Tuesday the bank's cost-cutting efforts gained urgency last spring when the economy began showing signs of slowing.

"We realize that the cost structure (of) our industry has to be brought down," Moynihan said in opening remarks at the Bank of America Merrill Lynch Banking and Financial Services Conference.

The bank's headcount peaked at 289,000 last summer and has started to come down, Moynihan said.

"We'll expect that you'll see that come down again this quarter as we continue to reduce heads," he said.

The second phase of Project New BAC addresses capital markets, wealth management and commercial banking businesses, where the bank has said there will be fewer job cuts. The bank, however, has been reducing positions in capital markets businesses even before New BAC takes effect, Moynihan said.

Source: Reuters