Bank of America cuts 3,500 jobs

Bank of America (BofA) is to cut 3,500 jobs by the end of September, joining a growing list of banks repositioning themselves worldwide amid stubbornly slow recoveries. For BofA, the biggest US bank by assets, the job cuts continue a broad push to slash expenses and build capital as it grapples with a $1 trillion (£604bn) portfolio of problem home-mortgage loans.

The job cuts, disclosed in an internal memorandum, are expected to be supplemented by additional cost-cutting in future quarters as part of a previously announced efficiency programme.

Global banks have announced close to 50,000 job cuts in recent months, with some expected to extend into 2012. Bank of New York Mellon Corp last week said it planned to cut 1,500 jobs, or 3 per cent of its workforce.