Bank of America Expected to Fire Thousands After Bleak Earnings

Bank of America Expected to Fire Thousands After Bleak Earnings


Bank of America

According to The Country Caller, Bank of America investors should be focused on two impending financial events. These events include the reaction to the recent Brexit and associated stress test results. Bank of America is a favored stock with millions of current and potential investors, who will take these two events into consideration on their anticipated returns. “The Charlotte Observer” reported that a top executive for Bank of America stated, the company is expected to reduce its consumer banking workforce by nearly 8,000 employees with their continued bleak earnings in 2016.

However, Bank of America is expected to continue to increase their sales positions, as a method, to increase business revenues. The Bank of America workforce has fallen 40 percent since 2009. This reduction in branches has become possible, as the increased trend for customers has been to access banking services through mobile and online technology.

There will be an announcement on June 23, 2016, of the results of the Federal Reserve stress test and the Brexit. On June 29, 2016, there will also be a dividend approval for Bank of America . These results will likely set the tone for the stock for the remainder of 2016. The bleak earnings due to the difficult current banking conditions are the result of low oil prices, interest rates, and a continued global economic slowdown. Unexplainably, investors admit they feel more secure despite the 70 percent decline in the bank’s stock over the past decade.

Bank of America is expected to fire thousands of employees, which is the result of the company’s bleak earnings. In the past, the bank’s sales force accounted for only 5 percent of the employee pool but is as high as 30 percent in 2016. Bank of America has also cut its number of branches from 6,100 to 4,700. In general, banking customers only visit traditional banks when they need to make deposits, apply for loans, and to receive new credit or debit cards.

This trend is not unique to Bank of America, but internationally, as more people feel comfortable utilizing the internet and mobile banking services. Even though Bank of America is expected to fire thousands, after their bleak earnings, they do plan to hire more sales professionals to handle the majority of daily business. Digital forms of payment like PayPal and Apple Pay have revolutionized the way people conduct transactions.

Apple Insider claims, Bank of America customers in the Redondo Beach, California, area will be able to withdraw money from all NFC-enabled ATMs. This system is not fully operational at this time, therefore, anyone attempting to make a deposit will still require a debit or ATM card to add money to their accounts. At the same time, the integration of Apple Pay at select Bank of America ATM locations began in May 2016.

It is important for Apple Pay users to be aware these compatible ATMs will bear a generic NFC-enabled logo and may not include the usual Apple Pay logo. To conduct these transactions, users only require an Apple mobile device that has been previously enabled with Apple Pay in order to access their funds. The user will need to open the Apple Pay application on their device, tap the device near the digital reader, enter their pin, and withdraw their funds.

Bank of America is expected to fire thousands due to the bleak earnings suffered by the company. The company will, however, hire sales professionals to shift the focus from traditional banking to a sales driven culture. The plan is for the company to generate long-term business relationships with individuals and businesses. As more customers are able to bank on their own terms, the services appear to be more personalized to meet the needs of individuals. As technology continues to evolve, more collaborations between traditional banks and modern banking options will continue to occur.

By Kristina Lasher
Edited by Jeanette Smith


The Country Caller: Bank of America Corp: Two Crucial Events Vital for Long-Term Buyers
The Charlotte Observer: Bank of America plans to reduce consumer workforce by thousands more
Apple Insider: Select Bank of America ATMs now processing Apple Pay withdrawals

Image Courtesy of Susanne Davidson’s Flickr Page – Creative Commons License


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