B of A Promises 30,000 Job Cuts, $5 Billion in Cost Savings

Bank of America Corp. said Monday that it would eliminate about 30,000 jobs over the next few years as part of its latest cost-reduction plan.

"The company expects that attrition and the elimination of appropriate unfilled roles will be a significant part of the anticipated decrease in jobs," it said in a press release following a speech by Chief Executive Brian Moynihan.

Moynihan promised investors he would save $5 billion in costs, but was otherwise scarce on details during the much-anticipated speech on Monday.

He did not discuss specific plans for cuts, despite widespread reports last week that Bank of America is mulling laying off up to 40,000 employees.

It was the latest part of Moynihan's campaign to restructure and restore confidence in the largest U.S. bank by assets. Last week he reorganized Bank of America's senior leadership, ousting prominent top executives Sallie Krawcheck and Joe Price.

Moynihan has come under increasing pressure in recent months to address the many problems facing Bank of America, including widespread doubts about its capital levels, the still-unknown cost of resolving its mortgage liabilities, and long-faltering investor confidence.

"All the businesses we have make money except for mortgages," Moynihan said during his presentation at a Barclays financial service conference on Monday, adding, "We need to keep working on" the bank's mortgage operations.

Last month Bank of America resorted to taking a $5 billion infusion from legendary investor Warren Buffett, at terms that were widely considered much more favorable to Buffett than to B of A.

The executive shuffle last week was the latest indication that Moynihan plans to sell unwanted bits of the company and hold on to major business units. The bank's restructuring means that Moynihan will effectively cede day-to-day oversight of Bank of America's nearly 290,000 workers across six sprawling businesses, experts say.