Bank of America Corporation (BAC - Free 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 - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) and Citigroup, Inc. (C - Free Report) .
BofA currently carries a Zacks Rank #3 (Hold).