Thread regarding Bank of America layoffs

@wg+1k9ckq0v2 -- BINGO!!

I suspect that Vendor Management is looking to decrease their headcount in 2026. They are combing through the inventory now and calculating ratios of vendors to vendor managers. I wouldn’t be surprised when that happens in the next quarter.

Hard to imagine they will ever do a large-scale layoff before pulling the lever on full-time RTO...knowing that will drive a lot of employees to the exit on their own.

@mb The pay of the current employees are so low, sometimes near poverty-level in major cities that it is not a good idea to target terminate. Young, talented and ambitious employees are not a dime a dozen, they cost market rate plus a premium to hire. And they know their worth and respect themselves too much for work here.

Start targeted enforcement terminations for those employees who still do not come in the office for absurd and BS reasons. Most of them sit home and do nothing anyway.

I don’t think there will be a wave of layoffs. I think there will be targeted enforcement and lots of terminations for cause. This way the bank doesn’t have to payout severance and the ceo can still thump his chest about not resorting to layoffs.

Albany, get in here

While Brian may not want to hear it, he could boost performance immediately by severing just ONE headcount, beginning with the Head of Consumer (yea, looking at you DA, which does not stand for D-mb Azz but should).

And if Brian really wanted to knock it out of the park, he'd chop off the head of PB as well.

#Fleetmafia dragging us all down. Get rid of these empty fave "leaders" (haha, the irony!), then out poor withering stock that just glimpsed the high of 2006 might shine again.

great discussion, keep it going guys

@a8

You will know the “when” in advance because WARN notices will have to be filed. 2026 is most likely. Big RIFs have usually been the end of Q4 or the end of Q1.

Here is the math on why it has to happen that ties back to the presentation - Q3 2025 Earnings shows an efficiency ratio of 62% (17.3B Noninterest Expense / 28.1B revenues ). Page 298 of Investor Day slide titled “Medium Term Targets” calls for an Efficiency Ratio of 55%-59%.

To achieve the midpoint 57% efficiency ratio (with flat revenues) requires a 1.3B expense cut (16B Non Interest Expense / 28.1B ). Compensation was 40.1B of the 66.8B in non interest expense in 2024. Management has been hoping for organic attrition and trying to force it with the worst compensation in the industry. It just hasn’t worked.

Commitments publicized at Investor Day require a significant cut. The bank is either going to make significant staffing cuts OR fail to meet expectations set with the investors. There is simply no other way.

If Investor Day was an effort to “gain” investors, it fell short. There was a significant sell off on Investor Day with all the markets up. Watch the CNBC video where Beckie Quick ask’s Brian why he thought the stock was selling off during the presentation. The answer was vague. Investors (ie Warren Buffet) are losing patience because the bank significantly underperforms peers and that is who the analysts compare us to, not a cherry picked index.

Over the last 5 years BAC share price is up 119%. It sounds great until you compare it to competitors with returns that significantly outperform the bank.

—- WFC share price is up 292%
—- GS share price is up 291%
—- JPM share price is up 204%
—- MS share price is up 216%
—- C share price is up 136%

Don’t forget - all the leaders have their personal net worth tied to the banks share price and are not happy with the share price under performance. Cuts are easy and long overdue.

Not true about future reductions ( Credit goes to AI)

Summary of Headcount Reductions in the Document

I confirm that there are mentions of headcount reductions. These are discussed in the context of historical operational efficiency, digitalization, and "right-sizing" efforts, rather than new or future reductions. The document emphasizes overall headcount management through "Operational Excellence," showing a net decline in total full-time equivalent (FTE) employees over time, while highlighting targeted growth in specific roles (e.g., relationship managers and technologists). No forward-looking or planned reductions for 2025 or beyond are explicitly stated; the focus is on past actions to drive efficiency.
Key Mentions and Details:

Slide on "Managed Headcount Through Operational Excellence… While Also Growing Relationship Managers" (Page 15 in the main presentation):

This slide provides a historical view of FTE headcount from 2010 (294K) to 2025 YTD (213K), showing a significant net reduction of ~81K over 15 years.
Specific reductions are attributed to:

Right-sized company and drove Consumer efficiency: (35K) in Consumer, (8K) in Operations (totaling -43K).
Realized operational excellence and digitalization: (13K) in Consumer, (33K) in Operations (totaling -46K).

These reductions are framed positively as results of efficiency gains, automation, and digitalization.
In contrast, the slide notes targeted growth in certain areas: +1.5K in Global Corporate & Investment Banking, +1.0K in Global Markets, +0.8K in Global Payments Solutions, +0.3K in Global Commercial Banking, +0.2K in Private Bank, and +4.3K in Technologists (for 2025 YTD).
Overall narrative: The company reduced headcount in operational and consumer areas (-85K total implied across categories) while investing in client-facing and technology roles.

Consumer Banking Section (Slide 10):

Mentions efficiency gains from digital adoption and scalability, with revenue per headcount increasing +2.1x (from 2011 to 2024) and total client balances per headcount +4.4x. This implies indirect headcount optimization through technology, but no explicit reduction numbers are given here.

Technology Section (Slides 5-7):

Discusses AI and automation (e.g., Erica platform, GitHub Copilot) leading to efficiencies, such as:

50%+ reduction in calls to help desk via Erica for Employees.
20%+ efficiency gains for software developers.
42% decrease in live chat volume in CashPro since Erica integration.

These are presented as productivity improvements that could enable headcount efficiencies, but no direct mentions of reductions. Instead, it notes ~18K software developers using tools and overall tech investments (~$118B over the past decade) to drive growth.

Operations Section (Slide 3):

Highlights expansive operations with 34,000 people across 32 countries, but no explicit reductions mentioned. Focus is on scale and processes (e.g., Single Process Inventory enabling automation and AI for "sustainable innovation").

Financial Overview Section (Slide 15):

Shows stable recent headcount: 208.1K (2019), 213.2K (2024), ~213K (2025E).
Expense growth (CAGR 4.0% from 2019-2024) is noted as below U.S. CPI (4.2%), implying discipline, but ties it to investments rather than reductions.
Investments in people are highlighted (e.g., +200 emerging growth & regional coverage investment bankers since 2019; >300 Merrill Wealth Management bankers added since 2019).

Other Sections (e.g., Global Wealth & Investment Management, Global Banking, Global Markets):

No mentions of reductions. Instead, growth in headcount is emphasized, such as adding advisors, bankers, and technologists to support organic expansion.

Overall Context and Tone:

Historical Focus: Reductions are portrayed as past achievements (2010-2025) through efficiency and digital transformation, not as ongoing or future initiatives. The net effect is a flatter headcount in recent years (~213K stable from 2024-2025E).
Balanced with Growth: The document contrasts reductions with investments in high-value roles, aligning with "Responsible Growth" (e.g., organic client acquisition, technology, and market expansion).
No Forward-Looking Reductions: Medium-term targets (e.g., revenue growth GDP+, operating leverage 200bps+) focus on efficiency without specifying headcount cuts. Future plans emphasize hiring in areas like military veterans (10K over next five years), community college hires (8K), and new financial centers (700 jobs).
Efficiency Drivers: AI, digital platforms (e.g., Erica, CashPro), and automation are repeatedly cited as enabling scalability and cost control, which could imply indirect future headcount implications, but nothing explicit.

@OP Based on the document, are you implying that the reduction will definitely happened in the near future?

The document had reduction in consumer operations from 2010 to present 101K to 55K. The reduction will continue for consumer operations. The growth in relationship managers & AI driven technology will continue.

This is all speculation for major layoffs in which we heard for many years. Worked at BOA for 25+ years as a B6 in consumer operations. For some of my processes, I question the priorities for the products that I support especially having limited access with CashPro. Why is BOA continue to support them versus the ones that are publicly given to our consumers? Is that the reason for the increase of audits within our departments to target not only employees but also for the products for retirement?

Until I see actual layoffs happening in my building, the rhetoric from upper management and Brian will always be "wah-wah wah wah wah-wah wah". The document is just a ruse to gain public investors.