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article imageBank of America to cut 3,500 jobs, may cut another 10,000-plus

By Andrew Moran     Aug 19, 2011 in Business
Charlotte - As part of a broader restructuring initiative, Bank of America will cut 3,500 jobs from its workforce. Reports are surfacing that the bank may cut more than 10,000 jobs company-wide in the coming months.
Earlier this week, Bank of America announced in a news release that it was selling its credit card business in Canada to TD Bank Group and will abandon its credit card business in Ireland and the United Kingdom
Bank of America and TD reached an agreement of $8.6 billion.
The largest bank in the United States also announced plans to cut one percent, or 3,500, of jobs from its workforce of nearly 300,000, according to the Associated Press. These job cuts are on top of the 2,000 that were announced earlier this year.
“I know it is tough to have to manage through reductions,” said Brian Moynihan, Bank of America’s CEO. “But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully.”
A bank spokesperson, Scott Silvestri, would not say if the job cuts were in a certain part of the country, but noted that they would spread across various business units; first in investment banking and trading and the second in banking, human resources, marketing, legal and others.
Moynihan has been trimming down the Charlotte, North Carolina company by lowering expenses and selling assets due to the mortgages and mortgage backed securities crisis and a recent string of lawsuits.
In recent weeks, Bank of America stocks have been taking a beating. During the Thursday morning trading session, the bank’s shares were down 6.5 percent, or 49 cents, to $6.97, according to Fox Business News. The stock is down more than 50 percent this year, which includes a 20 percent fall earlier this month.
“Obviously, it’s their exposure to the banks in Europe,” said head market analyst at Rockwell Global Capital, Peter Cardillo. “The reason why we’re seeing the banking sector under pressure is the new fears of a European situation. In a nutshell, it’s the fear factor over the European debt crisis.”
The bank’s tower in New York City was struck by lightning following the layoffs announcement.
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