Bank of America Corp (NYSE:BAC) will be cutting more than a hundred jobs in Georgia next month. Bank of America’s WARN notice states that the financial services company will be laying off 103 employees on April 3 in Kennesaw, Cobb County.
These Bank of America job cuts come after a fall in the bank’s profits in its fourth quarter. Bank of America’s profit declined by nearly half from the prior year because of tax law amendments, which resulted in the bank having to pay a charge of $2.9 billion.
The bank reported that it had earned $2.37 billion, or $0.20 a share in the quarter. This was down from the previous year’s $4.54 billion, or $0.39 a share. Its charge-off rate of loans was low, but steady, at 0.68%. The financial service company’s trading revenue dropped 11% to $2.5 billion in the quarter.
Bank of America has been gaining due to rising interest rates, however. The company’s net interest income rose by 11% from the previous year to $11.46 billion. The company’s deposits and loans in the quarter also increased, compared to the prior-year fourth quarter.
Its total revenue for the fourth quarter was $20.44 billion, compared to $19.99 billion in the year-ago period.
Bank of America Fired 3 Employees After Sexual Misconduct Probe
A sexual misconduct probe at Bank of America resulted in the recent firings of three employees in its hedge-fund-focused prime brokerage unit.
In January, one of the top executives in the prime brokerage unit, Omeed Malik, was fired after an investigation by the company determined that Malik had engaged in inappropriate behavior in the workplace. About a month later, Joe Voboril and Valerie Ludorf, who had worked under Malik, were fired too. The company found that the two had tried to cover up Malik’s actions.
Online Banking Trend and Branch Closings in Georgia
For the past few years, many Americans have been changing their banking habits. Nowadays, most people don’t like to drive to a bank, walk inside, and wait in line. Many of them prefer automatic deposits of their paychecks; online bill payments; ATMs for banking; and checking balances online—either on computers, mobile phones, or tablets.
Due to these changing habits, the need for full-service bank branches has decreased. As a result, most banks have been closing or consolidating their branches or opening standalone ATMs.
The recent Bank of America job cuts are a result of this current trend. On November 14, Bank of America closed three of its branches in Georgia as part of more than 20 branch closings in 2017.
“WARN Website Data Listings,” Georgia Department of Economic Development, last accessed March 2, 2018.
“Bank of America profits fall by nearly half; Goldman Sachs posts first loss in six years,” The Washington Post, January 17, 2018.
“Morning Coffee: The allegations of sexual misconduct at Bank of America just got worse. 30 year-old MD got ahead by being a bit obnoxious,” eFinancialCareers, March 1, 2018.
“Bank plans to close three Macon branches — a trend seen across the country,” The Telegraph, August 18, 2017.