Bank of America to cut 3,000 jobs

Source: Exec Digital USA

Date :10/25/2007 4:30:23 AM

Bank of America said on Wednesday it plans to cut 3,000 jobs, a week after reporting a 32 percent drop in third-quarter earnings last week.

The moves include eliminating about 3,000 jobs, with the cuts coming largely from the bank's global corporate and investment banking, amounting to 1.5 percent of the bank's 198,000-person workforce.

The bank said the cuts are spread throughout the unit, which includes commercial banking and treasury services in addition to capital markets and investment banking.

Changes

As part of the changes, Bank of America named Brian Moynihan, 48, as president of global corporate and investment banking, replacing Gene Taylor, a 38-year veteran of the bank, who will retire at year end.

The Charlotte, North Carolina-based company also said it has launched a strategic review of corporate and investment banking business to determine how the unit can operate better.

"While some of these changes are a direct result of our underperformance, others have been contemplated for a number of months," Chief Executive Kenneth Lewis said in a statement.

Last week, Chris Hentemann, head of Bank of America's global structured products unit, left the company.

Tough quarter

Like many of the major banks, the bank suffered a tough third-quarter.

Bank of America, the second-largest U.S. bank, said last Thursday that its net income and revenue suffered massive declines as trading losses and write-downs on a wide variety of loans offset solid revenue growth in most businesses.

After falling eleven percent this year, the bank’s shares closed 30 cents down at $47.48 on Wednesday.

October 25 2007

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