Update: Bank of America to Cut 40,000 Jobs and Close Branches Nationwide
Meeting at its corporate HQ in North Carolina, Bank of America's Board of Directors and top executives have decided to eliminate at least 40,000 jobs, mostly in California, and close a number of branches all over the country.
Many of the layoffs will be in California, mainly from BofA's sprawling consumer-banking operations.
This will take a heavy toll on branches, loan centers and other offices throughout California. The company is also in the process of closing 10% of its branches nationwide. The job cuts are expected to be made over the next several years.
These moves come as investors are pressing BofA to improve its performance after it lost money in four of the last six quarters and its stock has lost half its value this year.
BofA isn't the only company in this fix. Banks around the world are cutting jobs because stricter regulations and a tough second quarter for trading income are taking their toll on investment banking units in particular.
Bank of America has branches in Lufkin and a number of other east Texas cities. No one can say how many, if any, BofA Texas branches will be closed, but, corporate cut-backs like this often include closing the less "profitable" branches outside highly populated urban areas.
Note to BoA Lufkin employees: What color is your parachute? Do you even have a parachute?