America’s Second-Largest Bank Cutting Jobs in North Carolina

Job Cuts
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Bank of America Laying Off Employees in Charlotte

The second-largest bank in the United States by value of assets, Bank of America Corporation, is cutting an as-of-yet undisclosed number of jobs at its corporate headquarters in Charlotte, North Carolina.

The layoffs are taking place at the bank’s global technology and operations unit, and involve employees who perform various information technology job functions. The tech workers who were notified also include full-time project managers who oversee technology projects such as software testing and upgrades.

The bank’s global technology unit is headed by Chief Operations and Technology Officer Cathy Bessant, who oversees roughly 6,500 employees at the bank’s Charlotte headquarters. Globally, a workforce of nearly 95,000 direct employees and contractors falls under Bessant’s command.

Almost 30 tech workers were laid off in the same business unit in August 2016.

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The latest layoffs are part of the cost reduction plan announced by the management team in the second-quarter earnings call. Bank of America plans to reduce its annual non-interest expenses to roughly $53.0 billion by the end of 2018. By comparison, the same type of expenses over the prior 12 months had been about $56.3 billion.

As of now, Bank of America has laid off nearly 75,000 employees since Brian Moynihan became CEO in 2010. Since he took charge of the company, Moynihan has been making efforts to cut costs that became inflated in the years prior to his takeover.

Moynihan’s latest efforts are part of the cost-reduction program he introduced in 2014 named “Simplify and Improve.” He has been striving to make the company leaner and easier to manage by cutting extra layers of command and consequently reducing the costs of doing business.

The job cuts in the technology unit appear to be partly the result of automation. Bank of America Chief Operating Officer Tom Montag has indicated that the bank will continue to cut costs by using technology to replace people. He has also pointed out that the bank is using technology and analytics to avoid waste and achieve efficiency.

As of the end of March, Bank of America had about 209,000 employees worldwide, of which around 15,000 were employed at its corporate headquarters in Charlotte.

Sources:

Bank of America laying off more employees in Charlotte,” The Charlotte Observer, June 14, 2017.

Bank of America cuts more Charlotte tech jobs,” The Charlotte Observer, August 23, 2016.

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