It’s a leaner, sexier Bank of America.
No secret here — Bank of America has been trying to change its business by selling assets and shrinking its operations. Now, Bloomberg reports, in a meeting with employees last week, Bank of America CEO Brian Moynihan said the company could save up to $3 billion annually with additional cost cutting measures.
Ladies and gentleman, what we’re talking about is Phase II of ‘New BAC’. (Phase I was when Moynihan announced 30,000 job cuts from consumer banking, credit-card, home loan and support operations).
Managers will reduce the “overall cost structure of the company; through New BAC we’ve identified $5 billion,” Moynihan said last week. “We’ll pick up more in Phase 2, that ought to get you $1.5 billion to $2 billion a quarter” in total savings.
The savings should still come from the same place, which means that there will be less to cut (and thus less to save). Still, Bank of America is looking to double the $10 billion of revenue it made last quarter, so every little bit helps.
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