Bank of America to axe 3,500 jobs

 
City A.M. Reporter
Bank of America is cutting 3,500 jobs this quarter according to an internal memo, as the biggest US bank grapples with its $1 trillion (£607BN) problem-loan portfolio and growing economic concerns.

The job cuts at Bank of America, expected to be completed by the end of September, are the latest in a series of lay-offs across the global finance industry.

"The third quarter reductions in force are not part of the New BAC Project, through which employees and managers are working to transform policies, practices and organizations to better align to the company's customer-driven strategy," an internal communications seen by Reuters said.

Bank of America was not immediately available for comment outside regular U.S. business hours.

Executives at the bank are still discussing the possible range of cuts, but one person familiar with the situation said at least 10,000 jobs are likely to be eliminated as part of a wider review, the Wall Street Journal said in a report.

Bank of America had around 280,000 employees at the start of 2011, according to its annual report.

Investors believe Bank of America may also need to raise money by offering new shares to help absorb billions in legal and credit costs stemming from its 2008 purchase of Countrywide Financial Corp.