Monday, September 12, 2011

Bank of America plans to reduce expenses by cutting Jobs

Bank of America Corp is looking to reduce annual expenses by $5 billion by 2013 through its cost-cutting initiative, chief executive officer Brian Moynihan said.

And, the bank was targeting 40,000 job cuts over the next three years as part of the cost-cutting program. Bank of America currently has only a little less than 300,000 employees on its rolls

The bank is targeting an expense-to-revenue ratio to 55 per cent and is cutting from roughly $73 billion in annual expenses.

Bank of America is currently embroiled in various legal issues, which are also affecting its profitability. Bank of America shares have lost nearly half their value this year

Bank of America has about 50 senior employees reviewing some 150,000 ideas for cutting costs, Moynihan said.

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