As Obama Discusses His Job Creation Plan, Bank Of America Releases Details Of 30,000 Job Cuts

Tyler Durden's picture

The irony could.not.possibly.be.any.damn.funnier; Just as Sgt. Obama had the not so lonely unemployed club band huddled around him to tell America to "PASS THIS BILL", literally that very minute Bank of America released a statement it is sacking 30,000. Because Banana republic is so 2010, we are now officially an Onion republic.

Bank of America Issues Statement on New BAC

Business Wire

CHARLOTTE, N.C. -- September 12, 2011

Bank of America today issued the following statement following the company's presentation at the Barclays Capital 2011 Global Financial Services Conference.

Bank of America’s Project New BAC is key to the company's strategy of focusing all of its resources on serving individuals, companies, and institutional investors.

The first result of New BAC was the recently announced management reorganization, removing a layer of management and streamlining the company by aligning its businesses with the customer groups.

This reorganization follows on work that started in January 2010. The company continues to sell non-core business units and assets that don’t support its strategy, thereby strengthening the balance sheet, and improving capital and liquidity.

Phase I nearing completion

Bank of America is nearing the end of the first phase of a comprehensive review of its consumer businesses and support functions. As the company implements the thousands of decisions from Project New BAC over time, it intends to become a more focused, leaner, and more efficient company, providing all of its customers and clients with the best financial services, generating strong revenues, carefully managing expenses and risks, and delivering long-term value for shareholders.

Bank of America's goal is not a given number of job reductions, but rather implementation of New BAC decisions. As the decisions are implemented, employment levels in the areas under review during Phase I are expected to be reduced by approximately 30,000 jobs over the next few years. The company expects that attrition and the elimination of appropriate unfilled roles will be a significant part of the anticipated decrease in jobs.

Full implementation of approved ideas in Phase I is expected to lead to net expense reductions of $5 billion per year by 2014, on a baseline of $27 billion in annual expenses for the areas the company reviewed.

New BAC Phase II is scheduled to begin in October and continue through March 2012, and cover those businesses and operations that were not reviewed in Phase I.

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mayhem_korner's picture

Pass the peas, please!

AldousHuxley's picture

Time for wall st. and financial industry to feel the pain.

 

Keep in mind 30k is still only around 10% of total. They need to lay off 150k to truely reflect the economy.

 

Main st. already have gone through that.

Robslob's picture

Keep in mind 30k is still only around 10% of total. They need to lay off 150k to truely reflect the economy.

 

You talking about BofA or the Government...lololololol

Careless Whisper's picture

presenting Monica Lewis (no relation)

maestro... music please...

http://www.monicalewis.com/audio/songs.html

 

Shocker's picture

The numbers don't lie. If banks can't make it in the current enivroment, how do you think theses other business are going to fair.

Its a real mess out there

http://www.dailyjobcuts.com

 

-

Oh regional Indian's picture

Bad as they look, it's clearly to be done over a few years. Which, in this case is an appearence of can kicking because they know a shit-storm of humongous proportions is coming.

All this is such macabre theater. And peopel actually listen and navigate their lives according to such inputs.

Shocking. 

V

Why America Became a  Powerhouse

A.W.E.S.O.M.-O 4000's picture

Let's see. I get free money at least until 2013 and loan it back to the Gov't at 3% for a profit of infinity.

 

Yeah, that's tough investing environment

duo's picture

The government is a branch of BofA

TruthInSunshine's picture

 

 

 

Bank of America®. Bank of Opportunity™.

DoChenRollingBearing's picture

All those people standing around Obama did not look like B of A people to me. They looked like SEIU people!

Terrific.  More public sector jobs and B of A laying off 30k.  I would not know if 30k will help BAC much or not.  Bloating our public payrolls most definitely will NOT.

TruthInSunshine's picture

Robslob      You talking about BofA or the Government...

 

The federal government needs to lay off 810,000 employees (this doesn't include categories of workers either directly working for the federal government, but being paid by 'contractors,' nor workers who now have jobs but wouldn't if these size of cuts took place, so the tally would be closer to 1.2 million at the federal level lone), and state and local government needs to lay off 3,300,000 employees, in order to see the same proportion of downsizing that Main Street has seen.

This would save Americans 15%  on taxes, regulatory-licensing-permit-etc. fees and other kleptocratic, wealth transfer scams.

 

*There are now just under 25 million unemployed Americans aged 18 to 60 (from 6.5 million in 2000), and just under 46 million SNAP (food stamp) recipients (from 17 million in 2000).

http://www.usdebtclock.org/

DaveyJones's picture

is there a a difference?

hedgeless_horseman's picture

Firing tellers is not Wall St feeling the pain; repealing Glass-Steagall would be a start.

hedgeless_horseman's picture

I meant to say reinstating (obviously...I hope).

 

aquagreen73s's picture

Knew what you meant, and it was a great comment.

DaveyJones's picture

funny how "pain" is now defined as necessary regulation. They really have moved us way off the goal line

r101958's picture

How about discontinuing 'mark to fantasy' as well?

Arthor Bearing's picture

Lower of cost or market, only. Balance sheets would get real honest real fast

A Nanny Moose's picture

How about no more bailouts? Failure is the best regulation.

FreedomGuy's picture

Firing your local branch managers is not the Ferrari class feeling the pain. I would add that 30k more people competing for jobs and drawing unemployment doesn't make any of us better off.

If I recall, the Obama medical plan comes with no new medical people but there were 16,000 new IRS agents. So, the government could soak up half those job losses. They're probably good with numbers and fraud.

AldousHuxley's picture

"Project New BAC"

 

"The 3,500 sent packing this quarter will include "hundreds" of employees in investment banking and trading, with about 3%-5% of those divisions eliminated."

The first phase of the project began in May and involves an examination of the consumer side of the bank.

Those operations range from retail branches to mortgages to marketing and human resources. About 160,000 employees, or 55% of the bank’s total head count, work in consumer-related businesses.

Some belt-tightening is underway. Bank of America dumped 63 unprofitable branches in the second quarter and intends to close 750 of its roughly 5,700 branches in the next few years. The bank’s branches currently employ between 60,000 and 70,000 workers, said a person familiar with the situation.

The second phase of Project New BAC is expected to begin in October and focus on the bank’s commercial units: investment banking, trading, wealth management and corporate banking.

 

Look at this chart. BAC needs to go back to pre 2002 employee levels:

http://si.wsj.net/public/resources/images/MI-BK902_BOFA_NS_2011081818422...

Cindy_Dies_In_The_End's picture

Looks like a Banksta Middle Finger to Obama to me. Ah well, 30,000? Just a bunch of little people while Elephants dance on the grass and crush it.

Frozen IcQb's picture

Hoping it's a Top-Down process

Greater Fool's picture

In competence terms, BAC has been losing their top people for years now.

DaveyJones's picture

topless always appeals (or is that ap. peals)

NotApplicable's picture

I saw a headline earlier stating 40,000, so this is bullish, right?

dwdollar's picture

Yeah pretty much.  Those ex-employees should do well as construction workers.

Poetic injustice's picture

You mean highly qualified shovel-ready workers?
I suspect that Bachelor alone will not be enough to get those jobs.

cbxer55's picture

Remember that the USPS is trying to axe 220,000 folks. 120,000 firings and another 100,000 by natural attrition. THat oughta make them friday unemployment numbers real bullish!

doomandbloom's picture

yes, very bullish, better than expected.

EscapeKey's picture

Yes, but LAST week, this figure was 40k. And the DJIA resumeth rallying...

BorisTheBlade's picture

I think DJIA would rally even in case 30,000 were in addition to 40,000 last week, still bullish since speed of firing decreased and is approaching bottom, even if together with total labour force.

TradingJoe's picture

Yeah, ZER O DAMUSs timing is PRICELESSSS!

SheepDog-One's picture

YEA and its all magically pre-paid for!

DoChenRollingBearing's picture

That's what he said!  All paid for!

MsCreant's picture

I am worried watching Obama's "Stimulous Package Porn Show" unfold. I feel so dirty, so tin hat saying it, but here goes:

I believe that this whole thing is a drama designed in such a way that the dems and reps act out a "fight" in front of the world, then come to a resolution. Obama looks like a "decisive leader," congress looks like they can coordinate something, there is a "plan" in place, and, brace for it, WE GET OUR DOWNGRADE TRANFORMED INTO AN UPGRADE (we would, after all, show the world how together we are compared to others, right?). Dollar stronger, improvement documented (gotta give the new program time to work, right?), hope, change, TREASURIES SELL (oh so safe a haven, bitches), the debt ceiling has permission to come up again, and we kick our can down the road for a while longer. Plus he tries to fix some of the housing mess by doing re-fis where possible. Bankers love him because their worthless trash becomes worth more with the new document signing.

I just keep seeing how the press is trying to make him seem like a strong, competent, historical (barf, choke) kind of figure. Then RE-ELECTION bitches.

krispkritter's picture

No offense but I hope you're 100% wrong...and if he goes down in history, I hope it's as the president that made Carter look good.

MsCreant's picture

I don't want to be right. I put that out there to be argued against. The sell that he is "strong" is intense right now. Could be they are just trying to get him to look better for re-election, and no more. If it does not pass he says "See I tried." But that looks weak. I see something more monstrous here.

IQ 145's picture

He already made George Bush look like a kind wise and benevolent national leader. Carter is a stretch, I think.

DaveyJones's picture

It is gross to watch as much to listen. The last thing any of these con men want is a stronger dollar. Once the rest of the world joins in the cheaper currency war, everyones bread will rise while their dough deflates.

MsCreant's picture

I thought about that too. But a stonger dollar for a short while would take down PMs in US $, get folks off our back about the reserve currency status, and make us look like we were "turning around" when eveyone else is going in the toilet. Not that it would be real.

Please tell me I am wrong, but I am getting pissed and creeped out the more I see.

RichardENixon's picture

You're right MsCreant. Those who think it's a lock that Obama will be a one termer are in for a shock in 2012.

Blano's picture

I'm one of those who hope he's a one termer, but your odds of being right are indeed a lot higher than a lot of folks can or will admit.

DaveyJones's picture

seems to me they've backed themselves into a corner. Poor planning will do that. Can't pay an unpayable debt without weakening your currency. Can't keep gold down while you do the other. Most empires think they can do anything which is the very thing that ends them.

we'll be just like Rome in the end, totally corrupt with a few good places to eat. No Vatican art but a regular draw to the Rock and Roll Hall of Fame.

StychoKiller's picture

So, you should write for the X-Files!  (Nah, no one could possibly believe such a convoluted plot!) :>D

LawsofPhysics's picture

Fuck the paper-pushing fucknuts, they made a deal with the devil, time for your souls motherfuckers.  A step in the right direction as far as I am concerned.