Bank of America gives another jerk to the US citizens who are already jolted by severity of economic depression looming over entire globe. The bank has recently announced to cut slash down 30,000 jobs in order to save $5 billion from its yearly expenses. The Bank of America (BAC) is reducing these jobs in order to reshape its own budget and save itself from the aftermaths of recession.
Brian Moynihan, CEO of the bank stated this while addressing the US investrs in New York.
Moynihan also revealed that the banks position has deteriorated and reduced to half of its 2008 value due to poorly-written mortgages. Many investors have filed lawsuits against the BAC over its failure in the matter of selling mortgage-backed securities.
The failure was evident after the real estate values collapsed during recession. Cutting 30,000 jobs will reduce the workforce of BAC by a total of 10 percent. At present, the total number of employees working with BAC is 288,000. Recently, BAC has already removed 6000 top officials from its workforce.
The Charlotte, N.C. stated that more reduction in jobs may follow through attrition as well as permanently removing the positions which are yet to be fulfilled. The BAC is yet not sure about the exact number, but it be around 30,000 to effectively reduce its expenditure and save $5 billion by 2014.