Bank of America is cutting its banking and lending divisions. Sources say it’s the result of rising interest rates and their impact on its business.
The bank has reportedly instructed executives to stop hiring to save money and get ready for a possible economic recession.
BofA is not the only large bank to cut staff. Last month, as rates went up, several of BofA’s competitors cut jobs in their home-lending business (like Wells Fargo and JP Morgan). In January 2023, Wells’ target shifted from new customers to current customers and minority communities.
Sources say that fewer than 200 BofA employees are being moved to different roles. Some employees, including loan officers, are getting the boot. Many employees will keep their current salaries. But bonuses will change based on new job positions.