California To Feel Impact Of Bank of America Job Cuts
CHARLOTTE, N.C. (CBS/AP) - Bank of America said will cut about 30,000 jobs over the next few years in a bid to save $5 billion per year. The troubled bank said it expects many of the cuts will come through attrition and eliminating unfilled positions.
The number of job cuts isn't fixed, but the company said it expected they will total 30,000. B of A is one of California's largest employers, with an estimated 45,000 workers in the Golden State.
KCBS' Chris Filippi Reports:
The Charlotte, N.C.-based bank's stock has lost 47 percent this year, largely over problems related to poorly-written mortgages it acquired with its 2008 purchase of Countrywide Financial Corp.
The job cuts are part of the first phase of a cost-cutting program the bank calls "Project New BAC." It hopes to achieve the $5 billion in annual cost savings by 2014.
B of A is already in the process of closing 10% of its branches nationwide.
"You do have this phenomenon, particularly in major urban centers, where every corner has got some bank on it. And so I actually think that banks do have some room to cut back," suggested Jennifer Tescher, president of the Center for Financial Services Innovation.
According to Tescher, the slow economy and new regulations are forcing the banking industry to make changes that are likely to impact consumers.
"They've seen increasing fees, they're going to see more of those. I don't necessarily think it's going to impact service levels."
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