Bank of America to chop 30,000 jobs to reduce costs

Bank of America had 5,700 branches nationwide and 287,000 employees as of June 30.

Bank of America said it is cutting 30,000 jobs in the coming years as it looks to slash annual expenses by $5 billion, but investors were disappointed in the scant new detail the bank provided about its plans.

The bank’s chief executive, Brian Moynihan, said Bank of America is focusing for now on cutting costs in consumer banking and is taking steps like combining data centers to reach its target. Many of the job cuts will come from attrition and eliminating positions that are open now, the bank said.

Bank of America’s shares have lost more than half their value this year as mortgage litigation and a weakening economy threatened to sap the bank’s profits for years.

Media reports last week said the bank could cut as many as 40,000 jobs, and many investors had hoped the bank would announce a dramatic turnaround plan yesterday to show how it is addressing its difficulties.

The Moynihan speech “was pretty underwhelming,” said Jason Ware, equity analyst at Salt Lake City-based Albion Financial Group. “They need to address the bigger issues the bank faces.”

Bank of America built itself through acquisitions over decades and, according to analysts, has not properly integrated systems or closed unnecessary branches.

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


News
Entertainment
Sports
Lifestyle
Local

Philadelphia principal has President Obama's ear

The West Philadelphia head is gathering ideas to present to the White House.

Local

Neighbors testify at Overbrook roommate slaying trial

Neighbors and roommates were called to testify Wednesday in the trial of Renaldo Robichaw, 56, charged with murder for the death of roommate Albert Smith, 48.

Local

Attorney at heart of alleged insurance fraud took…

A Center City personal injury lawyer took his own life last week, days before D.A. Seth Williams released an indictment putting the lawyer at the heart of an alleged insurance…

National

Hamas, Abbas's PLO announce reconciliation agreement

The Gaza-based Islamist group Hamas and President Mahmoud Abbas's Palestine Liberation Organization (PLO) agreed on Wednesday to a unity pact.

Television

TV watch list, Wednesday, April 23: 'Suburgatory,' 'Modern…

'Suburgatory' The men of "Suburgatory" go camping and Tessa mentors a social outcast in a Miss Chatswin contest, which brings her, once again, into conflict…

Movies

Latin culture highlighted at Filadelphia film fest

Get ready to have a “Bad Hair” day at the upcoming Filadelphia Latin American Film Festival. We mean that in the best possible way. The…

The Word

The best lines from Oprah's ex-stepmother's Daily Mail…

Oprah’s ex-stepmother, Barbara Winfrey, is out for revenge.

Books

A debut novel about fate, love and moving…

Pia Padukone talks about her debut novel, "Where Earth Meets Water."

NFL

NFL releases Eagles 2014 schedule

The Eagles have four primetime games, face the Cowboys on Thanksgiving and host the Seahawks in a dynamic, challenging and impressive schedule. Here's a look…

NHL

All signs suggest Steve Mason will start in…

Flyers head coach Craig Berube elected to put Steve Mason in net for the final minutes of Game 3.

NHL

Gary Bettman praises Philly prior to NHL draft

Gary Bettman will bring the NHL draft to Philadelphia this summer.

NHL

Flyers can’t solve Rangers shot blockers

The Rangers blocked a remarkable 28 Flyers' shots Tuesday night.

Style

Pippa Middleton's Etsy pick: Golden Thread Jewelry

Get a look at the jewelry Pippa Middleton loves and find out how you can buy it too.

Parenting

What every parent needs to know to get…

Mom and author of "Small Talk," Tracey Blake, shares her five practical tips to help you develop your children's language skills.

Sex

Subway crush: Meet your soulmate on your commute

Read about a couple who has been 40 years after meeting on the train.

Tech

Happy birthday, Game Boy! The handheld console turns…

Nintendo's Game Boy turns 25 this week. To commemorate, we look at some of its better games, like "Tetris" and "The Legend of Zelda: Link’s Awakening."