Bank of America is delivering the U.S. its biggest job-cut blow of the year as the nation is battling unemployment woes.
The bank will eliminate about 30,000 jobs in an effort to restore investor confidence and turn a negative tide that has swelled after the recession and amid the slow-growth economy.
The jobs cut is the single largest job reduction by a U.S. company this year, and the most since the U.S. Postal Service said last year it wanted to cut an additional 30,000 jobs. Earlier this year Merck & Co. said it would cut 13,000 jobs, and Bank of America‘s is the largest since General Motors cut 47,000 jobs in 2009.
Bank of America is trying to cut costs as its Countrywide mortgage unit continues to suffer massive losses.
The cuts fall in line with massive job reductions at financial companies in the U.S. and abroad. However, as already this year the 50 largest global banks had announced nearly 60,000 job cuts, the fastest pace since the recession-plagued year of 2008. As the economy in the U.S. and Western Europe stagnates, banks have had to reduce costs to become or remain profitable.