On Monday, Bank of America (BofA) announced that it had cut over 2,600 jobs during the second quarter of 2016.
The second quarter cuts represent Bank of America’s biggest quarter-to-quarter drop in employment in more than a year. The most recent cuts are just the latest in an ongoing trend: BofA has cut over 70,000 jobs since current CEO Brian Moynihan took over in 2010.
Even after the cuts, Bank of America still has over 210,000 employees, which helps it maintain its status as one of America’s Big Four commercial banks.
Despite the recent cuts, BofA CFO Paul Donofrio mentioned on an investor conference call that the bank has generally slowed its rate of eliminating positions. He also added that an increasing number of positions that have been eliminated have been those of highly-paid managers, as opposed to tellers and other less white-collar positions.
Job cuts across firms in the banking sector have been common as of late, with JPMorgan Chase being one of the few exceptions.
One of the biggest reasons for weakened employment amongst banks has been the fact that interest rates set by the Federal Reserve have long remained low. This benefits borrowers; banks, not so much.
Bank of America’s earnings report showed that second-quarter net income fell by 18 percent to $4.2 billion. Although earnings beat what analysts projected, BofA joins Wells Fargo in having experienced diminished returns throughout 2016.
In terms of job cuts at other major banks, Wells Fargo shed 700 positions over the last quarter, while Citigroup eliminated 5,000.