It is reported that Bank of America Corporation (NYSE: BAC) has eliminated at least 15 senior bankers last week. The layoffs were mainly made in its Asia investment-banking unit, including Hong Kong, Singapore and Australia.
Over the past year, bank revenues suffered from the plunge in oil prices, the tumult over Chinese economy, and the backdrop of the stock market. The turbulent global economy hit the bonds of emerging-market companies and countries, bring challenges for banks to boost fixed income, currencies and commodities (FICC) revenues. According to Goldman Sachs, FICC revenues in the first quarter dropped 15% on an average that include JP Morgan, Morgan Stanley, Bank of America, and Citigroup. A latest survey conducted by Coalition also revealed that the 12 largest investment banks, including Citigroup, JP Morgan Chase, Bank of America Merrill Lynch, and Goldman Sachs, saw a significant plunge in revenue generated from trading in 2015.
Triggered by global headwinds, the Wall Street giant JPMorgan Chase laid off a number of emerging-market credit traders, including global head Robert Milam. The Goldman Sachs Group also plans to cut off over 5% of its fixed-income traders and salespersons in 2016. Barclays intends to eliminate around 1,200 jobs in its investment banking division, exiting Russia and shutting offices across Asia. Following its peers` steps, Bank of America decided to implement job cuts at trading divisions since last month. CEO and Chairman Bank of America, Brian Moynihan, already mentioned at the World Economic Forum in Davos that the company plans to implement cut offs across the bank to keep their expenses below $13 billion.
Additional layoffs might occur in the future. The North Carolina-based banking giant has been reported to be cutting jobs at its investment banking and capital markets operations in regions, including Asia, Europe and the US. Bank of America will also reduce junior positions and back-office jobs.