Bank of America plans to cut about 30,000 jobs

Bank of America Corp.

Last Updated at 29 Aug 2014, 16:02 ET *Chart shows local time Bank of America Corp. intraday chart
price change %
16.09 +
+0.08
+
+0.50

Bank of America is to cut 30,000 jobs over the next few years as part of a cost-cutting programme.

The cuts represent about 10% of the company's workforce.

Bank of America wants to save about $5bn (£3.2bn) a year as it slims down the bank that was hit hard by the sub-prime mortgage crisis.

The cuts came on the day that President Barack Obama sent his $447bn jobs bill to Congress - his attempt to reduce the level of unemployment.

Bank of America is calling the cost-cutting programme Project New BAC, named after the code for its shares on the stock market.

It has also been selling off assets; last month it sold half of its 10% stake in China Construction Bank.

The shares initially rose, then fell back again amid disappointment at the lack of detail given about the cost-cutting plans. Late in the session they recovered to close up by 1.3%.

Last week, it was reported that Bank of America would be cutting 40,000 jobs and present a detailed turnaround plan.

The shares have lost about half their value this year as fears grow that it may have to issue more shares to meet new global capital requirements.

There was a brief recovery last month when it was announced that billionaire investor Warren Buffett had invested $5bn in the bank, but the shares have now fallen below the levels before that investment was made.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.