US second largest bank, Bank of America (BofA) is set to slash 16,000 jobs by the end of 2012, as part of its cost cutting drive initiative known as Project New BAC to recover from the financial crisis, due to mortgage-related losses.
The Wall Street Journal reported that the information regarding the latest round of job cutting was in a document provided to the bank’s top management, although BofA’s spokesman Larry Di Rita declined to comment on the matter.
Under the project, headed by Chief Executive Brian Moynihan, the bank is set to axe 30,000 jobs and $5bn in annual expenses before its planned schedule, further reducing its workforce below that of JPMorgan Chase & Co (JPM) and Wells Fargo & Co (WFC).
Elimination in the second phase is likely to result in reducing $3bn in annual expenses by mid-2015 through undisclosed cuts in capital markets, commercial banking and wealth management areas, according to the news agency.
The document had revealed that cost savings from the first phase stood at an annual pace of $970m, which lacked behind the aim of $1bn in the second quarter of 2012.
At the end of the second quarter of 2012, the bank had 275,460 employees.