BANK OF AMERICA, N.J. (AP) BANK of AMERICA announced Monday it is laying off 7,500 people and closing more than $6.4 billion in U.S. operations over the next year, leaving more than half the company’s global workforce with less than a year of work remaining.
The bank also said it expects to lay off employees at a lower rate than it had planned.
The layoffs and closures are part of the bank’s efforts to stabilize its financial situation and improve its profitability.
The U.K. bank’s total headcount will decline by about 4,600 people, it said in a statement.
The company said it will spend $1.5 billion over the rest of the year on capital expenditures.
BAC, which was founded in 2008, has about 6,000 employees and about $20 billion in assets.
The New York-based bank is one of the largest U. S. banks.
Bailout plan In a statement, the bank said it has already reached $2 billion in new funding and plans to continue to add new capital and meet new commitments.
It said the bank will also invest $600 million over the coming years to expand its operations and services, including hiring new workers.
BANK’s decision to reduce the size of its workforce comes after its bank holiday was postponed last week to allow for the bank to stabilize.
The shutdown has hurt the bank and other U.s. financial companies in the face of rising interest rates.
Banks have been increasingly hesitant to raise rates.
In recent months, U.N. Financial Services Commissioner Lael Brainard said banks were “losing their grip on the global economy” as their business model relied more and more on credit and cash flows.
The Bank of England also said last month that it will limit its rate hike plan until 2019.