Business

Moynihan says BofA to cut 3,500 jobs

Aug. 19 (Bloomberg) — Bank of America Corp., the biggest U.S. lender, will eliminate about 3,500 jobs this quarter to focus “on what we can control” amid market turmoil, said Chief Executive Officer Brian T. Moynihan.

Some workers already were informed of the dismissals, which are in addition to 2,500 reductions made this year, Moynihan said yesterday in a memo to senior managers. Cuts will affect operations across the Charlotte, North Carolina-based firm and include as much as 5 percent of the investment-banking unit, or about 600 people, said two people with knowledge of the plans.

Moynihan is under pressure to reduce expenses at the bank, whose market value has plunged by about half this year. He’s booked about $30 billion in costs tied to home loans since replacing Kenneth D. Lewis in 2010, mostly because of the 2008 takeover of subprime lender Countrywide Financial Corp. At the same time, revenue is shrinking as the U.S. economy slows.

Full story: Moynihan Says BofA Plans to Cut 3,500 Jobs This Quarter – Businessweek.