Bank Watch

Bank of America cuts more Charlotte tech jobs

Bank of America confirmed more layoffs impacted its Charlotte operations on Tuesday.
Bank of America confirmed more layoffs impacted its Charlotte operations on Tuesday. Bloomberg

Bank of America slashed more jobs in Charlotte on Tuesday, the latest in cost-cutting at the company.

Affected employees informed the Observer about the layoffs, which the bank confirmed. According to the bank, fewer than 30 Charlotte-based technology and operations positions were eliminated, most in the bank’s global banking and markets units.

In a statement, bank spokesman Dan Frahm noted the cuts are part of ongoing efficiency efforts at the Charlotte-based company. Bank of America CEO Brian Moynihan has been pushing for additional streamlining under a program launched in 2014 called Simplify and Improve.

“These notifications have been ongoing and reflect our previously announced efforts to simplify our company for our customers and clients,” Frahm said. He added that affected employees are encouraged to apply for open positions at the bank.

Since becoming CEO in 2010, Moynihan has cut tens of thousands of positions though layoffs, attrition, automation and sales of business units in a bid to reduce the bank’s expense base. During the second quarter of this year, the bank said it eliminated more than 2,600 jobs, its largest quarter-to-quarter drop in a year.

Last month, the second-largest U.S. bank by assets announced a new cost-cutting goal, saying it planned to reduce annual noninterest expenses to roughly $53 billion by the end of 2018. That compares with about $56.3 billion over the previous 12 months.

In the past year, the job losses in Charlotte have come in mortgage, technology, marketing and communications areas. Despite the layoffs, the bank on Tuesday noted its Charlotte-area employment has consistently remained at more than 15,000.

Tuesday’s layoffs impact a unit run by Charlotte-based executive Cathy Bessant, head of technology and operations. A direct report to Moynihan, she oversees a workforce of roughly 100,000 employees and contractors worldwide, including about 6,000 in Charlotte.

Moynihan is reducing the bank’s workforce as he faces pressure from investors to improve the bank’s profitability, at a time when low interest rates are impacting revenues of banks everywhere. He is also pushing to streamline a company that had expanded through decades of acquisitions.

Deon Roberts: 704-358-5248, @DeonERoberts

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