Bank of America has been cutting jobs in its commercial banking unit in recent weeks even as it tries to boost the group's business, people familiar with the situation said, reflecting the bank's broader struggles to grow in a tepid economy.
The job cuts are the latest round in Bank of America's cost-cutting program, known as Project New BAC, and focus on the unit that makes loans to mid-sized companies around the country. Analysts expect Bank of America to disclose more about the current round of New BAC when it posts earnings on July 18.
The second largest U.S. bank is cutting bankers and loan processors in commercial banking offices scattered around the country, sources said. Bank of America hasn't disclosed the number of cuts, but one of the people said it was a small percentage of the total unit.
The bank declined to say how many employees it has in commercial banking. In a February 2011 securities filing, it listed 7,100, but some businesses have been moved out of the unit since then.
The cuts came even after Brian Moynihan, Bank of America's chief executive, said publicly that the bank wants to make more loans to small and mid-sized companies.
"We need to see our teams do more work on loan growth," he said at a conference in May.Page 1 of 4 | Next Page