BUFFALO, N.Y. (Reuters) – Bank of American Corp (BAC.
N) said on Friday it plans to cut five percent of its workforce in the U.S. and Europe, amid falling commodity prices and a widening global financial crisis.
The decision will reduce BAC’s global total workforce to nearly 10,000, or about 20 percent of the bank’s global workforce.
The bank has been cutting jobs as investors have priced out risky assets like the euro and U.K. Sterling, and as regulators tighten their controls on money laundering and terrorism financing.
The company will reduce its global total to about 5,000 employees, or less than 10 percent of total BAC revenues, the bank said in a statement.
The cut in its U.U.S., European and Asia-Pacific operations, it said, will be made effective on December 31.BAC has lost about $1.4 billion in the past six months, the most recent quarterly filing, as a glut of mortgage and other assets has pushed mortgage lenders to cut rates and companies to raise debt.
Investors are also weighing a possible run on BAC as more banks face pressure to cut costs, which have risen as the price of commodities have tumbled.
Bac has been a global pioneer in consumer credit products and has long been a beneficiary of a worldwide boom in mortgages, which are increasingly available to consumers.
It has been expanding credit lines to help people save for retirement and buy homes.
Banks are also increasingly using a range of new products, including peer-to-peer lending, to expand their lending to people without traditional bank accounts.
The bank said it will expand these products in a wide variety of markets, including in the United States and Europe.
Bancorp is the fourth-largest U.s. bank by assets, and the largest in the world, behind Morgan Stanley (MS.
N), Goldman Sachs Group Inc (GS.
O) and JP Morgan Chase & Co (JPM.
Bancor’s board of directors will meet on Friday to approve the cuts.
It was not immediately clear how many of the affected positions would be eliminated.
Baccias chief financial officer, Robert Cimone, said in an email that Bancorp’s “current and anticipated expenses” for 2017 would be “substantially offset by our expected net loss in 2018.”(Reporting by Eric Walsh in New York; Editing by Andrew Hay)