Bank of America (BofA) is reportedly planning to cut approximately 540 jobs at its legacy asset servicing division in Charlotte that manages troubled mortgage loans.
The planned job cuts will affect nearly 60% of the workforce at the asset servicing unit in Charlotte, North Carolina office, according to media reports.
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Reports also emerged that the US lender has dispatched 60-day notice to the affected employees, while giving them an option to apply for 150 posts at the consumer call centre in Charlotte and for another 250 vacancies in the city.
BofA spokesman Dan Frahm was quoted by Business Journal as saying, "It’s a really difficult message because the fact that we’ve cut the need for that support thanks to these efforts and an improving economy is a good sign for our company and the customer."
"But for our employees who have worked so hard to help those customers, this is tough," Frahm told the publication.
The job cut seems to be a part of BofA’s plans to curtail operational cost at its Legacy Asset Servicing group, which was initially set up in 2011 to deal with 1.4 million past-due mortgages resulting from the acquisition of Countrywide Financial in 2008.
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By GlobalDataEarlier, the bank has eliminated banking jobs at its troubled-mortgage units in New York, California, Dallas and California.
In September 2013, BofA said it is planning to reduce 2,100 jobs across the US at its mortgage division, due to slowing mortgage refinancing activities owing to increasing interest rates.
According to an estimate, the bank had cut 16,000 and 30,000 jobs in 2012 and 2011, respectively, citing various reasons.
