Bank of America is laying off 540 employees in Charlotte. The company will cut employment in the city’s Legacy Asset Servicing division by more than half.
Downsizing has been the name of the game for Bank of America for the past few years, but Senior Vice President Dan Frahm says these particular layoffs are the story of a temporary team succeeding at their assignment.
The Legacy Asset Servicing Division was created in 2011 to service nearly 1.5 million delinquent loans racked up during the financial crisis and at risk of foreclosure, Frahm says.
“This team has been so successful that we now have one-fifth the size of that portfolio, just over 250,000 loans now,” says Frahm. “So that’s one-fifth the demand for these specialized services they have been supporting, and that’s really the basis for this decision.”
The bank told 540 employees they will lose their jobs in late August. 150 of those will be allowed to transfer to other divisions, while others could reapply to about 250 openings the bank currently has in Charlotte.
Bank of America has cut about 40,000 jobs since 2011, when it had nearly 288,000 global employees, as part of a strategy to streamline the business.