Bank Of America is cutting 3000 jobs in its investment banking sector due to credit crunch. The announcement comes less than a week after the second-largest U.S. bank posted a 32 percent slide in profits due to trading losses and write-downs on bad loans.
Bank Of America is planning to leave wholesale-mortgage business which will help them in cutting 700 jobs. According to the bank, employees exaggerated by the downsizing are qualified to apply for open positions at other Bank Of America units. A cut of headcount by 3,000 represents 2 percent of the bank's work force.
Most of the layoffs will come from Bank Of America’s global corporate and investment banking, which took a hard hit from disruptions in the credit market. The Charlotte-based bank's net income dropped $100 million, a decline of 93 percent from a year-ago figure of $1.43 billion.
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