Bank of America Cuts Exceed Jobs at Most Banks: Chart of the Day
Bank of America Corp. (BAC) is getting rid of more employees in the next few years than most of its largest U.S. competitors have working for them.
The CHART OF THE DAY shows how the 30,000 jobs that the country’s biggest bank will eliminate compares with the number of employees at companies in the KBW Bank Index, according to data compiled by Bloomberg. The job cuts represent the biggest single workforce reduction by a U.S.-based company so far this year, according to consulting firm Challenger Gray & Christmas Inc., and is the biggest by a bank since HSBC Holdings Plc said last month it plans to cut 30,000 positions by the end of 2013.
Bank of America employs about 287,000 people, Chief Executive Officer Brian T. Moynihan said yesterday, when the job cuts were announced. The total is the highest among the 24 banks in KBW’s index.
Three other companies in the industry gauge -- Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC) -- also have more than 200,000 employees. They were omitted from the chart along with Bank of America. The employment figures were taken from each company’s annual report.
The reductions at the Charlotte, North Carolina-based bank are part of an effort to save $5 billion annually from consumer units by the end of 2013. The overhaul is the first phase of a reorganization program, called Project New BAC, that will set its sights on the company’s other businesses next month.
“We see a fair amount of expense-saving opportunities,” Jason Goldberg, an analyst at Barclays Capital, wrote yesterday after appearing with Moynihan at an investor conference in New York. He didn’t elaborate in the note. Goldberg is neutral on the company’s shares.
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