BofA (BAC) to Cut Thousands of Jobs in Cost-Savings Effort; Asset Sales Also on Table
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Price: $38.32 -0.13%
Overall Analyst Rating:
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Dividend Yield: 2.8%
Revenue Growth %: -1.9%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.8%
Revenue Growth %: -1.9%
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Bank of America (NYSE: BAC) may be looking to trim its workforce even further, according to sources.
Following an announcement in 2008 that BofA was aiming to slice 30,000 to 35,000 positions, the largest bank in the U.S. by assets may be looking to trim another 3500 jobs.
Cuts will be spread across BofA's operations nationwide and expected to be completed by the end of September.
That's not all. Executives are still evaluating cuts that might increase to 10,000 positions before all is said and done, as BofA looks to implement an aggressive overhaul known as "Project New BAC." The cuts would amount to 3.5 percent of BofA's total workforce.
With BofA shares hovering at yearly lows, CEO Brian Moynihan is pulling out all the stops in an effort to return the institution to a more profitable state. BofA is expected to lose about 25 cents per share at the end of fiscal 2011, though it should earn $1.48 for fiscal 2012. Moynihan's goal is to cut expenses by as much as $1.5 billion per quarter, as recently told at the banks latest conference call.
The move would stem investors fears of BofA's exposure to the slowing U.S. economy and mounting mortgage-related losses.
BofA isn't the only financial giant to make additional cuts. Earlier in July, HSBC (NYSE: HBC) said it planned to eliminate 30,000 jobs worldwide by 2013, and Wells Fargo (NYSE: WFC) has said it plans to trim expenses by $1.5 billion per quarter.
Earlier in the week, BofA announced the sale of it's Canadian credit card business to TD Bank (NYSE: TD) for $8.5 billion. Further, rumors were that BofA would sell Merrill Lynch's real estate assets to Blackstone (NYSE: BX) in a deal valued at $1 billion.
BofA is trading nearly 3 percent lower Friday, to $6.81. The financial giant hit a 52-week low of $6.31 on August 8th, following talks of a downgrade to U.S. debt (which did occur). Shares closed just over 20 percent lower that day.
Following an announcement in 2008 that BofA was aiming to slice 30,000 to 35,000 positions, the largest bank in the U.S. by assets may be looking to trim another 3500 jobs.
Cuts will be spread across BofA's operations nationwide and expected to be completed by the end of September.
That's not all. Executives are still evaluating cuts that might increase to 10,000 positions before all is said and done, as BofA looks to implement an aggressive overhaul known as "Project New BAC." The cuts would amount to 3.5 percent of BofA's total workforce.
With BofA shares hovering at yearly lows, CEO Brian Moynihan is pulling out all the stops in an effort to return the institution to a more profitable state. BofA is expected to lose about 25 cents per share at the end of fiscal 2011, though it should earn $1.48 for fiscal 2012. Moynihan's goal is to cut expenses by as much as $1.5 billion per quarter, as recently told at the banks latest conference call.
The move would stem investors fears of BofA's exposure to the slowing U.S. economy and mounting mortgage-related losses.
BofA isn't the only financial giant to make additional cuts. Earlier in July, HSBC (NYSE: HBC) said it planned to eliminate 30,000 jobs worldwide by 2013, and Wells Fargo (NYSE: WFC) has said it plans to trim expenses by $1.5 billion per quarter.
Earlier in the week, BofA announced the sale of it's Canadian credit card business to TD Bank (NYSE: TD) for $8.5 billion. Further, rumors were that BofA would sell Merrill Lynch's real estate assets to Blackstone (NYSE: BX) in a deal valued at $1 billion.
BofA is trading nearly 3 percent lower Friday, to $6.81. The financial giant hit a 52-week low of $6.31 on August 8th, following talks of a downgrade to U.S. debt (which did occur). Shares closed just over 20 percent lower that day.
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