Bank of America plans 30,000 job cuts On Monday 12 September 2011, 10:56 PM By Joe Rauch

REUTERS - Bank of America Corp said it is cutting 30,000 jobs in the coming years as it looks to slash annual expenses by $5 billion. The bank's chief executive, Brian Moynihan, said Bank of America is focusing for now on cutting costs in consumer banking and is taking steps like combining data centers to reach its target. Many of the job cuts will come from attrition and eliminating positions that are open now, the bank said. Bank of America's shares have lost more than half their value this year as mortgage litigation and a weakening economy threatened to sap the bank's profits for years. Media reports last week said the bank could cut as many as 40,000 jobs Bank of America is in the middle of a broad cost-cutting initiative known as New BAC after the company's stock symbol. The first phase aims to reduce expenses by $5 billion by 2014. The bank is targeting an expense-to-revenue ratio to 55 percent, compared with the first quarter when it was about 57 percent. Bank of America is cutting from roughly $73 billion in annual expenses, excluding interest expenses. The next phase of cost cutting will focus on corporate and institutional businesses, like commercial lending. Bank of America built itself through acquisitions over decades and, according to analysts, has not properly integrated systems or closed unnecessary branches. The bank had 5,700 branches nationwide and 287,000 employees as of June 30. Bank of America has about 50 senior employees reviewing some 150,000 ideas for cutting costs, Moynihan said. The bank's talk of cost cuts came as U.S. President Barack Obama unveiled a plan to boost employment amid the struggling economy.