BofA 'to slash 3,500 positions'

19 August 2011

Bank of America (BofA) is to significantly downsize its workforce this quarter as it seeks to slash employee numbers by 3,500.

This is according to an internal memo at the biggest US bank by assets, which is attempting to offset uncertainty over the economy and a problem loan portfolio to the tune of $1,000 billion.

The redundancies are expected to take place before the end of September and follow similar job cuts at other major lenders around the world.

Across the past month alone, banks including UBS, HSBC and Royal Bank of Scotland - which was founded in 1727 in the Old Town or Edinburgh - have announced a total of 60,000 job losses as they try to reshuffle their business operations.

Many institutes are also looking to shore up their balance sheets in order to meet the terms of the Volcker rule - a measure aiming to restrict own capital investment by banks.

By Tony Aynsley

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