This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Banks With Looming Layoffs

NEW YORK ( TheStreet) -- Along with first quarter earning revenue declines, many banks are announcing layoffs and restructurings of business units.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Bank of America (BAC - Get Report) is laying off 1,500 loan processors and underwriters as it closes 200 of its small loan fulfillment centers. The layoffs come as the bank expects its mortgage loan volumes to drop by 25 percent this year from last and it looks to cut its expenses.

Layoffs in the centers have already commenced. In California 128 employees were notified of layoffs in April, according to the Los Angeles Times. The bank also laid off 34 people in Saratoga Springs, in an effort to close the facility in July, according to The Business Review.

In addition the bank is laying off 2,000 contractors, according to The Wall Street Journal. The bank cut 12 technology and operations jobs in Charlotte, N.C., according to The Charlotte Observer. The bank also cut its partnership with 157 First Data Technologies employees that were working in a Banc of America Merchant Services' Louisville call center , according to Business First.

Bank of America has been trimming jobs in its consumer and small business units as part of a wider restucturing.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Wells Fargo (WFC - Get Report) is laying off 4,500 retail mortgage employees due to declines in mortgage revenue. Wells Fargo notified 1,700 people in early April that their jobs would be eliminated during the second quarter.

The bank's mortgage banking income fell $741 million from the fourth quarter of 2010 to $2.02 billion. As the bank improves its foreclosure practices as part of the foreclosure settlement and settles mortgage putbacks, it is possible more layoffs could follow.

"While we may reduce staff in some areas, we are also hiring in other areas. For example, in our annual report, it said we had 6,500 open jobs at the end of 2010. We are hiring," said a Wells Fargo spokesperson told TheStreet of the layoffs.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

First Niagara (FNFG - Get Report) recently closed its deal with NewAlliance.

The NewAlliance deal is expected to result in 219 layoffs in Connecticut. CEO John Koelmel said that so far the integration has been on track.

It has been our smoothest conversion and initial integration," said Koelmel in an interview with TheStreet.

Even though the bank is conducting layoffs in Connecticut, it is hiring in New York and wants to add 500 more employees by 2016, according to Hartford Business.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Capital One (COF - Get Report) is laying off 62 customer service employees in its bank loss mitigation department at its office in Plano, Texas.

A spokesman told the Dallas Business Journal that the bank is consolidating some of its operations in the Dallas-Fort Worth area.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Lloyds Banking Group (LYG - Get Report) is conducting layoffs as part of its ongoing restructuring of the business.

The bank recently laid off 325 employees as part of its "ongoing integration," according to The Guardian. The latest cuts were in the business support functions and wholesale and group operations in the UK.

Lloyds may also be selling a majority stake in UK wealth management boutique, which could mean more bank layoffs, according to Financial News.

>>To see these stocks in action, visit the 5 Banks With Looming Layoffs portfolio on Stockpickr.

--Written by Maria Woehr in New York.

To contact the writer of this article, click here: Maria Woehr.

To follow the writer on Twitter, go to

To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.80 -1.50%
COF $73.37 -1.26%
FNFG $10.64 -0.93%
LYG $4.02 -2.66%
WFC $50.41 -1.02%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs