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Bank of America: 'Phase I" of cost-cutting will eliminate 30,000 jobs

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Upcoming job cuts at Bank of America will reduce its payroll “by approximately 30,000 jobs over the next few years,” the company just announced.

The financial giant describes the reductions as part of “Phase I” in its reorganization. “Phase II” covering “businesses and operations that were not reviewed in Phase I,” will begin in October.

As the Charlotte Observer writes, BofA “plans to slash $5 billion in annual expenses in the first phase of its ongoing cost-cutting initiative.” That “amounts to 18 percent of the $27 billion in expenses the Charlotte bank tallied for consumer banking, credit card, home loans, technology and operations and other support functions in the year that ended March 31.”

Phase II, it adds, will address "$28 billion in annual expenses for commercial banking, wealth management, capital markets, corporate banking and support functions.”

According to the bank, it “expects that attrition and the elimination of appropriate unfilled roles will be a significant part of the anticipated decrease in jobs.”

Update at 12:35 p.m. ET. The Observer just added this context:

“The Charlotte bank employs about 288,000 worldwide, about 15,000 in its headquarters city. The job cuts would equal a little more than 10 percent of the workforce.”

Copyright 2011 National Public Radio.

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