Back to top

Analyst Blog

Bank of America Corporation (BAC - Analyst Report), the second largest U.S. lender by assets, announced its latest decision to reduce workforce. The bank plans to eliminate 209 jobs from its troubled mortgage servicing unit in Pittsburgh.

BofA intends to complete the layoffs by the end of Sep 2013. However, the laid off employees will be assisted with career counseling, services and resources.

Moreover, BofA plans to eliminate around 1500 jobs in its legacy assets and servicing division in 2013 by closing its offices in Texas, New Jersey, and upstate New York. The unit had around 31,700 full-time employees as of Jun 30, 2013.

Earlier in Apr 2013, BofA closed its mortgage servicing office near Buffalo, N.Y, which resulted in nearly 1,320 job cuts. It also eliminated about 469 jobs in Newark, N.J in the same month.

As part of its cost control initiatives, BofA has been eliminating jobs over the past few quarters. It slashed nearly 4,378 jobs in the first quarter of 2013 and approximately 5,400 jobs in the fourth quarter of 2012. The company had 257,158 employees as of Jun 30, 2013, a decline of 6.6% from the year-ago period.

The job cuts do not come as a surprise since many other global firms have resorted to the same strategy over the last few years. The ongoing economic issues and weakening revenue resources have prompted the company to downsize its operations and reduce workforce in order to improve its overall competence.

Other companies that have resorted to job eliminations over the past several quarters include Morgan Stanley (MS - Analyst Report), JPMorgan Chase & Co. (JPM - Analyst Report) and Citigroup, Inc. (C - Analyst Report).

BofA currently carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%