Bank of America Corp. (BAC:US), the second-largest U.S. lender by assets, told Texas regulators last week it will cut 411 jobs from a unit servicing troubled mortgages.
The bank will eliminate 324 positions at 2375 Glenville Dr. in Richardson and 87 jobs at 1201 Main St. in Dallas, according to letters dated June 19. Workers were notified earlier this month of reductions to be completed Sept. 30, John Collingwood, a Bank of America senior vice president of government relations, said in the correspondence.
Chief Executive Officer Brian T. Moynihan has targeted $8 billion in annual costs and 30,000 jobs in his efficiency plan, Project New BAC. Many of those cuts are in the unit created in 2011 to service delinquent and risky mortgages. The lender said in April it had 667,000 overdue loans as of March 31, compared with 1.6 million at the height of the financial crisis.
“There’s nothing more important in our company than getting this done as quickly as possible,” Moynihan, 53, said of the loan-servicing job eliminations on Jan. 17.
Workers are offered career-transition resources, severance pay and benefits, Collingwood wrote.
Earlier this year, the firm said it planned to shut an office near Buffalo, New York, affecting 1,320 jobs and one in Newark with 469 positions. Bank of America had 262,812 employees as of March 30, a drop of 5.7 percent from a year earlier.
Bank of America won’t sacrifice the level of service it provides to homeowners in need of help, Jumana Bauwens, a company spokeswoman, said today in an e-mail. The firm had previously said it would reduce the size of its legacy mortgage unit as its portfolio of delinquent customers shrinks, she said.
To contact the reporters on this story: Hugh Son in New York at email@example.com Zachary Tracer in New York at firstname.lastname@example.org
To contact the editors responsible for this story: David Scheer at email@example.com; Rick Green at firstname.lastname@example.org