Bank of America Job Cuts Largest Since USPS, GM, Circuit City

The 30,000 planned job cuts announced today by Bank of America is the largest single workforce reduction announcement by a U.S.-based employer so far this year, according to Challenger, Gray & Christmas, Inc., the global outplacement consultancy that tracks job-cut announcements daily.  The Bank of America job cut is actually the largest since the United States Postal Service announced 30,000 job cuts in 2010.  In 2009, General Motors announced 47,000 job cuts and closures by retailer Circuit City resulted in 34,000 job cuts.  Prior to today’s announcement, the largest layoff announcement this year came from pharmaceutical giant Merck & Co., which reported plans to shed 13,000 workers as part of a cost-cutting initiative designed to make the company more competitive and keep profits propped up following the loss of patent protection for one or more of its drugs.  The third largest cut this year came from retailer Borders Inc., which was unable to rebound from bankruptcy protection filed earlier in the year and was forced to shutter all of its remaining stores; a move that impacted nearly 11,000 workers.  Are other banks at risk of heavy job cuts?  How do big layoffs like this impact the economy?  What should Bank of America workers be doing right now to prepare for job loss?

 

TOP FIVE JOB CUTS, 2011

September Bank of America

30,000

July Merck & Co.

13,000

July Border’s Group Inc.

10,700

August United States Army

8,700

March US Postal Service

7,500

 

TOP FIVE JOB CUTS, 1993-2011

Jul-93 IBM

60,000

Jan-93 Sears Roebuck & Co.

50,000

Nov-08 Citigroup

50,000

Feb-09 General Motors

47,000

Nov-08 Circuit City Stores

41,305

Source: Challenger, Gray & Christmas, Inc.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s