Bank of America is eliminating about 100 jobs in Charlotte, as the bank continues to reduce staff that handles problem mortgage loans and makes cuts in its technology and operations unit, a bank spokesman said Wednesday.
Under CEO Brian Moynihan, Charlotte-based Bank of America has been focused on reducing expenses at a company that once grew rapidly through acquisitions.
The bank, one of Charlotte’s biggest employers, has long said it has about 15,000 employees in its hometown.
As the housing market recovers, the nation’s No. 2 bank by assets has said it will continue to reduce staff in its Legacy Asset Servicing unit, which serves customers who fall behind on home loan payments. The bank also continues to trim technology-related expenses, while adding staff that works with affluent customers and makes loans to businesses.
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Bank employees told the Observer that they were informed of layoffs on Wednesday. Bank spokesman Dan Frahm said workers will be able to apply for other positions in the bank. Those who don’t stay on are eligible for severance and career counseling, he said.
Moynihan signaled last month that the bank planned to cut more jobs at a time when profits are being squeezed by low interest rates.
“The headcount will come down because we’re 60 percent people costs,” Moynihan told Bloomberg TV. “There’s not enough other costs to save a lot of money.”
At the end of the third quarter, the bank had 215,193 employees worldwide, down by more than 14,300 from a year ago. Since Moynihan took over in 2010, Bank of America’s total employee count has dropped by more than 68,800.
Bank of America’s technology and operations unit, led by Charlotte-based executive Cathy Bessant, has slashed jobs a number of times in recent years, including in mortgage-related functions. Last month, the bank cut pay and instituted furloughs for information technology contractors.
Other banks, including San Francisco-based Wells Fargo, have also been slashing mortgage jobs in recent years. Last month, Wells said it was laying off 36 mortgage employees in Fort Mill, S.C., and Charlotte.