Bank of America job cuts to rise to 30,000 over the next several years

Bank of America Corp is finalisng plans cut around 10 per cent of its workforce or approximately around 25,000 to 30,000 jobs over the next several years.

The largest US bank by assets, Bank of America, expects its workforce cuts to rise to 10,000 in the coming months, The Wall Street Journal reported in the backdrop of the bank's stock plunging over 40 per cent since the beginning of this year.

In the first phase of the programme, the bank's executives are examining the consumer side of the bank, the mortgage business and staff functions, the Charlotte Observer said.

In the fourth quarter of this year and the first quarter of next year, the bank will tackle capital markets, wealth management and commercial banking operations.

Bank of America chief executive Brian Moynihan said the bank could cut as much as $1.5 billion in quarterly expenses, in a conference call with investors last month.

Moynihan said the management team will meet early this month for a third and final assessment of "ideas for change". "We expect to begin communicating major outcomes and next steps soon thereafter," the bank's memo said to senior leaders last month.

Under the given global condition when increase in revenue looks bleak, cutting costs boosts profits and allows the bank to build up the capital it needs to absorb mortgage-related losses and meet new international standards.