Bank of America’s Job Cuts Offer a Road Map for Navigating Higher Costs
- Shrinking headcount helps keep expense growth in check
- Banks stocks with surprisingly high expenses get pummeled
The Bank of America Tower in New York.
Photographer: Amir Hamja/BloombergThis article is for subscribers only.
The biggest U.S. banks received a clear message in recent days: Runaway expenses won’t cut it.
Lenders that reported higher-than-expected costs, including JPMorgan Chase & Co., Goldman Sachs Group Inc. and First Republic Bank, had their shares pummeled by investors. Bank of America Corp., on the other hand, showed companies a different way to manage costs despite rising inflation, a war for talent and soaring tech spending.