Bank of America may try to reduce annual costs by an extra $3 billion in the next phase of Project New BAC, the savings initiative the bank started undertaking last year.
In a employee meeting last week, Chief Executive Brian Moynihan told employees the bank could end up saving $6 billion to $8 billion a year, up from the $5 billion that had been projected. The bank is now focused on reducing jobs in investment and commercial banking, trading and wealth management business lines.
Under the $5 billion savings plan, 30,000 layoffs were scheduled. A new, larger cost-savings goal may mean more pink slips. BofA couldn't immediately be reached for comment.
In the fourth quarter, the bank shed 5,874 employees, leaving total headcount at 284,635. While the bank did add 1,700 financial advisers over the year, Bruce Thompson, the firm's chief financial officer, cautioned that the hiring of FAs is likely to slow in 2012.
Wall Street chief executives will take home smaller paychecks than last year, but don't shed too many tears: The packages are still worth millions of dollars.
New Structure (Bloomberg Businessweek)
Credit Suisse group is bringing back a bonus structure that will see senior employees get paid some of their goods in bonds backed by derivatives. The other portions will be cash and stock.
JPMorgan Chase will hire about 200 people this year in Orange County, Calif. The state is high on the priority list for expansion, Chief Executive Jamie Dimon has said.
Significant Restructuring (Financial News)
If banks want to really turn things around, some believe they'll have to cut even more jobs over the coming year.
The Oracle Sings (China Real Time)
Perhaps Warren Buffett should release a CD at his next shareholder meeting.
Rusty Rueff, career expert at Glassdoor and former head of HR at Electronic Arts and PepsiCo, will take your questions about resumes, job applications and interviews in a live chat today at 12 p.m. ET at WSJ.com. Ask your questions now.
Keep Your Resolutions (Mergers & Inquisitions)
Sticking to your fitness/career/life goals doesn't have to be impossible, even if you're working 80-hour weeks.
Buzz Around the Office
Young Drummer (YouTube)
Hey, pretty good rhythm for a five-year-old.
List of the Day: New Rules for Finding a Job
Keep these in mind as you continue your job search.
1. Don't give away too much that could exclude you, like telling an interviewer you need to have knee surgery.
2. Realize the hiring process is meant to exclude you and find a way around it.
3. Make sure your resume is formatted correctly.
(Source: Glassdoor.com)
- Bull/Bear Report - Hirings, firings, rising stars and downward spiral of the finance job market
- Get the job: From writing resumes to negotiating the offer, all the tools to land the perfect finance job
- Morning Coffee: Sign up for the latest in finance career news
- FINS.com: Finance jobs, research and career news by FINS from The Wall Street Journal