Financial Business Review: BofA Speeds Up Job Cuts, Nomura Initiates Job Slashes
These were Thursday’s top stories:
The staff reduction procedure at Bank of America Corporation (NYSE:BAC) is now accelerating and plans to eliminate some 16,000 jobs the end of 2012 will leave it with 260,000 workers, according to the Wall Street Journal. The layoffs comprise a portion of “Project BAC” which is targeted at bringing savings of $8 billion per year by 2015. The majority of the cuts will likely take place in the company’s consumer operations since the bank will shut 200 branches in addition to the 178 it closed last year.
Thus far in 2012, the mortgage servicing sector has been the star of the banking industry, with the stocks of Nationstar Mortgage Holdings (NYSE:NSM), Ocwen Financial Corporation (NYSE:OCN), and Walter Investment Management Corp. (AMEX:WAC) coming to mind. However, investors should take heed as the sellside gets some traction. It is also good to remember that it’s mortgage servicing and the same issues that helped to induce the top banks to divest their portfolios could impact these specialty players.
Large anticipated job eliminations in Nomura Holdings, Inc.’s (NYSE:NMR) European investment banking division seem to be coming true on Thursday, as up to 30 percent of the positions are likely to be slashed, say multiple sources. The current move is ostensibly to reduce costs by $1 billion.
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