Executives at struggling Bank of America (NYSE:BAC) reportedly plan to slash 3,500 jobs this quarter and are weighing plans for an even deeper restructuring that would make at least 10,000 more jobs disappear as well.
According to The Wall Street Journal, the new job cuts, which are expected to be completed by the end of next month, spread across struggling BofA, including investment banking and trading, the paper reported.
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The report means the Charlotte-based lender is joining the global ranks of financial services companies lowering their headcounts. In recent banks Goldman Sachs (NYSE:GS), Barclays (NYSE:BCS) and HSBC (NYSE:HBC) have all announced plans to cut jobs.
Led by CEO Brian Moynihan, BofA execs are expected to unveil a deeper overhaul that is known as Project New BAC, the Journal reported. While they havent settled on a final number, one source told the paper at least 10,000 jobs are likely to be slashed equaling 3.5% of BofAs total workforce.
BofA is seen as one of the most economically-sensitive banks in the U.S. because of its huge loan portfolio, which includes $1 trillion of problem loans.
Moynihan is eyeing cost cuts of as much as $1.5 billion per quarter in an effort to offset sinking revenue.
The cost cutting at BofA comes as corporate America is fearing a double-dip recession and financial markets have tumbled.
Shares of BofA slumped another 3.21% to $6.78 in Fridays premarkets, putting them on track to extend their huge 47% 2011 plunge.