Bank of America cuts put total financial cuts ahead of 2010

Bank of America Cuts Push 2011 Financial Cuts Past 2010 Levels

The 3,500 planned job cuts at Bank of America reported this morning will push financial sector layoffs past 2010 levels, according to data from global outplacement consultancy Challenger, Gray & Christmas, Inc., which tracks downsizing announcements on a daily basis.  Through July of this year, firms in the financial sector announced 14,752 planned job cuts, 4.2 percent fewer than the 15,399 at the same point a year ago.  The 3,500 job cuts announced by Bank of America alone brings the 2011 year-to-date total to 18,252, surpassing the 2010 eight-month total of 17,220.  The job cuts reported this morning by Bank of America may be just the tip of the iceberg, according to reports estimating that total job cuts at the nation’s largest bank could reach 10,000.  As Bank of America continues to struggle in the aftermath of the housing market collapse, other retail and investment banks are being hit by a weakened stock market.  Last month, U.S.-based Goldman Sachs announced 1,000 job cuts, while a host of foreign banks, including HSBC, Credit Suisse, Lloyd’s of London and Barclay’s announced worldwide job cuts numbering in the tens of thousands.

 

FINANCIAL SECTOR JOB CUTS, 2005-2011

2011

2010

2009

2008

2007

2006

2005

January

2,822

2,942

1,458

15,789

4,030

3,348

11,220

February

2,860

375

13,550

6,267

5,332

6,896

3,166

March

1,525

200

8,651

4,663

7,070

2,671

3,413

April

3,447

3,551

6,645

23,106

33,789

2,338

3,756

May

759

2,363

8,522

16,206

4,804

7,196

1,817

June

321

470

2,085

19,227

9,800

7,292

868

July

3,018

5,498

5,030

15,517

2,181

1,939

12,998

August

3,500*

1,821

2,320

2,182

35,752

1,666

2,118

September

2,254

668

8,244

27,169

1,557

2,119

October

1,412

655

17,949

10,515

5,624

1,763

November

544

664

91,356

6,953

2,516

3,881

December  

2,566

1,257

39,604

5,710

7,284

3,354

TOTAL

18,252

23,996

51,505

260,110

153,105

50,327

50,473

 

*Bank of America cuts only.  Other financial job cuts will be tallied at the end of the month and released with the full report on August job cuts at 7:30am ET on Wednesday, August 31.

Source: Challenger, Gray & Christmas, Inc.

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