Bank of America said few of its cuts would occur in areas where employees dealt directly with customers. Analysts and bank officials said Bank of America would refocus its resources on customer service in branches, in securities sales and in affluent banking offices and was likely to employ even more people in these areas. The retail banking sector is under pressure from rising interest rates and an increase in problem loans, trends that could accelerate as the economy slows. These banks have found it harder to pass these costs on to consumers in today's fiercely competitive market. Federal banking regulators say troubled loans have hit retail consumer banks harder than large, global companies that are more diversified geographically and by product line.
Banks just have to be tighter on cost controls.
The wind is not really at their backs the way it was, so they need to pull in the reins. The resulting bank kept its headquarters in Charlotte and adopted the Bank of America name. He said the cuts were necessary as the group continued to absorb its acquisitions. Mr Hance also said the bank would improve its financial picture through internal reorganisation rather than additional purchases. The bank said its full-time workers numbered 150,854 as of June 30, down more than 11,000 from a year earlier, but that more reductions would be needed.