Bank of America intends to cut 16,000 jobs companywide by years end as part of its ongoing efforts to trim expenses, The Wall Street Journal reported on its website late Wednesday.
The newspaper, citing sources familiar with a document given to top management, said the Charlotte-based bank has set a target head count of 260,000 by years end. That scenario means the company would lose its position as the largest employer in U.S. banking, the newspaper said.
Bank of America officials did not immediately return calls Wednesday night.
Cuts include 5,300 consumer-banking jobs and 3,200 in the unit that oversees new mortgages, the newspaper said. Additional reductions are expected in a unit that handles troubles loans.
The cuts are part of Project New BAC, the wide-ranging efficiency initiative launched by CEO Brian Moynihan to streamline operations and sell off noncore assets. The nations second-largest bank by assets has said it expects to save $3 billion a year by mid-2015 under the second phase of Project New BAC. Thats on top of the projected $5 billion in annual savings announced previously as part of the efficiency initiatives first phase.
Moynihans focus on streamlining operations has helped drive the bank back to profitability after a tough few years in the aftermath of the financial crisis.
The company employs about 15,000 in its headquarters city.