updated - July 13, 2020 Monday EDT
Bank of America is eliminating over 1,100 mortgage and consumer banking jobs.
According to American Banker, the cuts reflect the current lull in people not applying for mortgages.
"The layoffs follow the successful reduction of our portfolio of delinquent mortgage customers," Bank of America said in a statement American Banker reported.
These include cuts in states throughout the country such as Ohio and Texas.
Bank of America spokesman Terry Francisco told The Cleveland Plain Dealer the number of customers seeking assistance with the company's specialized programs through the government's Home Affordable Refinance Program has also declined.
"Today we have fewer than one-third the number of customers who need the specialized programs and support of this team," he said. "These actions also reflect our ongoing efforts to streamline our facilities and align our cost structure with market realities."
Thursday, the company informed about 1,000 workers in Beachwood, Ohio they would lose their positions as of Oct. 31. The bank's offices in Independence and Cincinnati will also shut down, The Plain Dealer reported. The Independence office has 55 employees while the Cincinnati location has 100.
Six-hundred and sixty positions in home loans fulfillment, the majority in the refinance sector, are also in the list of cuts, with an additional 350 to 400 more in customer service.
Employees affected will be given severance packages The Plain Dealer reported.
Few affected employees will be able to be transferred to other departments and positions throughout the company because of a lack of similar positions - except in its Merrill Lynch Investment offices, Beachwood officials hope something can be worked out with the banks currently stand.
"While we are always very disappointed to hear of any job cuts, we view this as a temporary setback," Beachwood Mayor Merle Gorden told The Plain Dealer. "The Cleveland Clinic owns the two buildings housing the affected Bank of America facilities. The Cleveland Clinic has thriving operations in Beachwood and we are optimistic that they might be able to expand into this space."
Over 400 positions are expected to be eliminated in Dallas the American Banker reported. All the cuts are in line with steps other banks like Wells Fargo have taken with its mortgages departments.
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