A few months ago we pointed out that mass layoffs were coming for bankers due to declining revenues and more difficult market conditions, and now we’re seeing the first major wave of that come to fruition.
Bank of America has announced that it will fire as many as 8,000 employees within its consumer division the FT reports. The core reason given for the headcount reduction in this instance is that digital banking is picking up the pace, and has reduced the need for “back office staff” and bank tellers.
This is a trend that BofA highlighted in its In its Q1 earnings press release, as the bank showed that mobile banking users had shot up 15% y/y.
The bank has already slashed headcount by more than 10,000 in 2015, and has cut almost 40,000 from its consumer division alone since 2009 (bringing the total at the end of Q1 to 68,400). The layoffs are in line with what has been happening to its retail branch count, which has fallen by about 1,400 over the past seven years. Thong Nguyen, president of retail banking told a conference in New York this week that the numbers would “probably go down to the low 60s”, implying as many as 8,000 layoffs are on the horizon.
This post was published at Zero Hedge by Tyler Durden – Jun 15, 2016.