Bank of America announced Friday that they plan to lay off 3,500 employees to cut costs. The eliminated positions will come from the investment banking, trading and other divisions.
The company expects to finish this round of cuts by the end of September. Some employees with eliminated jobs have already been notified.
The bank aims to please stockholders by increasing efficiency with these layoffs. The bank’s stock has struggled this year, dropping over 50 percent since January. Before this round of job cuts, they already laid off 2,500 of their 280,000 employees this year. The report announcing this current round of layoffs mentioned more job cuts could be on the way, possibly bringing the total to over 10,000.
Bank of America is the nation’s largest bank when ranked by assets but the company has struggled in its attempts to rebound from the housing bubble burst. Tens of billions of dollars lost after acquiring subprime lender Countrywide Financial in 2008 made the company’s recovery even more difficult.
Merrill Lynch, which Bank of America owns, will also lose employees in the current round of cuts.