A flag flies outside the Bank of America Corporate Center in Charlotte, North Carolina. Davis Turner/Stringer via Getty Images
Bank of America is planning job cuts in its investment bank, estimated to affect less than 200 employees globally, Bloomberg reported Thursday.
A bank spokesperson told Banking Dive less than a month ago that Bank of America was not planning widespread cuts.
Thursday’s move may prove that “widespread” was the operative word.
A Bank of America representative declined to comment to Bloomberg on Thursday.
The Charlotte, North Carolina-based lender last month initiated a partial hiring freeze, and executives were told to pause hiring except for the most vital positions, Bloomberg reported at the time. The bank said it would continue to hire for some key roles in banking, trading, wealth management and technology but would hold off on bringing in new hires until at least midyear or until the economy improves, the wire service reported.
Job cuts are expected in the coming weeks, but decisions are still being made, people familiar with the matter told Bloomberg on Thursday.
The move comes as the bank saw a 54% drop in investment-banking revenue in the fourth quarter.
Bank of America’s estimated 200-person cull falls far short of headcount reductions at several similarly sized banks. Morgan Stanley in December cut 1,600 employees. Goldman Sachs started a 3,200-employee reduction in January. BNY Mellon and Capital One followed suit last month, cutting 1,500 and 1,100 employees, respectively.
Source: https://www.bankingdive.com/news/bank-of-america-200-job-cuts-investment-banking/642957/
