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Mortgage slowdown to cost 1K Bank of America workers their jobs

  • The move in BofA's (BAC -0.3%) Beachwood, Ohio office comes as the mortgage refinance boom goes into reverse, and as the bank continues with its focus on cutting costs (aiming at 30K job cuts total, $8B in savings annually by 2015).
  • Refinances nationwide made up 70-75% of home loans last year and have dropped to 60-65% this year, according to Freddie Mac. They're expected to fall to less than 50% next year.
  • Most of those being fired worked in mortgage refinancing, while the rest are in customer service for consumer banking.
  • Bank of America employs around 170K.
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Comments (1)
  • NYCTEXASBANKER
    , contributor
    Comments (2446) | Send Message
     
    If a bank has no growth the staffing requirements are reduced between 3-5% because of technology annually. We use to say we need 6% growth keep the people we have. No one wants to lay off people because of technology but that's the real world. When I joined Chase Securities Division part time in 1963 while in High School, the NYSE did under 6 million shares a day.
    30 Aug 2013, 12:29 PM Reply Like
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