Traders at Bank of America are in for an unsettling few weeks as their employer eyes a higher-than-usual number of job cuts at its capital markets and investment banking operations.
The US bank is set to become the latest on Wall Street to show people the door after several of its rivals set out plans to cut thousands of positions at financial centres worldwide.
The number of employees to go at Bank of America could not be determined on Friday but people familiar with the matter said it was likely to be higher than the 5 per cent who are typically axed each year in investment banking.
Competitors including Morgan Stanley and Credit Suisse have already laid down plans for cuts as pressures mount on trading businesses — particularly in fixed income, currencies and commodities.
First-quarter FICC revenues are set to drop by an average 15 per cent at Bank of America, Citigroup, JPMorgan and Morgan Stanley, analysts at Goldman Sachs estimated this week.