PlanMaestro Posted April 20, 2012 Share Posted April 20, 2012 Report: Bank of America workforce shrinking http://www.charlotteobserver.com/2012/04/20/3185600/report-bofa-workforce-shrinking.html The bank’s total full-time equivalent headcount fell to about 279,000 at the end of the first quarter, down about 4 percent from the year before as the company’s signature Project New BAC cost-cutting initiative continues. But those numbers include 2,500 hires in its Legacy Asset Servicing division, the unit dealing with troubled mortgages. Those positions are required to comply with directives in several legal settlements the bank has entered with the federal government and state attorneys general. Bank of America is now required to provide a “single point of contact” for homeowners going through loan modifications or foreclosure. Excluding hires in the troubled-mortgage division, the bank’s headcount is down 5,600, or 2 percent, since the end of 2011, and 20,000 from last year, Chief Financial Officer Bruce Thompson said in a conference call with analysts. That’s a decline of about 7 percent over the year. At the same time, Bank of America is increasing its offshore and contractor levels. Such so-called “third-party staffing” in the mortgage unit increased by one-third in the quarter, reaching 16,000 people. The bank did not disclose third-party staffing in other divisions. Staffing levels in the troubled-mortgage unit will come down starting in the second half of the year, CEO Brian Moynihan said. Bank of America also continued to close branches in the first quarter as it works to cut expenses in its retail unit. The bank closed a net 51 branches in the quarter, and is targeting 750 closings over the next few years, Moynihan said. Potential credit-card customers will see less direct mail coming to their homes as Bank of America changes its strategy to bring in new cardholders, Thompson said on the call with analysts. Instead, the bank will focus more on using its branches and website to bring in more credit-card customers. Bank of America reported $800 million in litigation expense over the quarter, but less than half of it was mortgage-related, Thompson said. Though the $25 billion mortgage-servicing settlement with state and federal authorities was announced in the first quarter, the bank already had reserved funds for its penalties. The bank also has been battling lawsuits involving auction-rate securities, checking-account overdrafts and its acquisition of Merrill Lynch, according to its most recent annual report. Link to comment Share on other sites More sharing options...
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