Bloomberg News reports that executives of Bank of America were instructed to stop hiring. If recruitment does go on, it would be just for the vital job roles. This move comes as a means of curbing costs and preparing for an impending economic meltdown.
Move as an Escalation of Preplanned Measures.
The company decided last year to slow down recruitment. This move comes as an escalation of the same, especially after a couple of workers left the company of their own accord. This was revealed by individuals that are familiar with the matter.
BOA will not hire employees until mid-year or until the economy does not offer a clue of a turnaround or recovery. However, the bank clarified that hiring would continue in those departments where the revenue growth is commendable. The domains that fall within this purview include the bank’s trading, wealth management, and business banking segments. Technology jobs will remain open to recruitment as well.
Hiring Spree Ends at Bank of America
Following a surge in the headcount, the BOA has applied brakes in hiring. The main reason includes escalating costs and persistent inflation. This has led to a situation on Wall Street where the war for talent is gradually fading.
By keeping a tab on expenses, a metric for measurement and assessment that traders are closely watching. On the positive side, despite the reining inflation, Bank of America has increased revenue compared to expenses.
No Job Cuts in Sight
Despite freezing hiring, the bank does not show any intention of job cuts even though there exists a pullback throughout the financial market. It was found that the overall headcount at Charlotte, North Carolina-based bank surged to 216 823 towards the end of 2022. This figure is up from a year earlier when it was recorded as 208,248 and 213,270 in the 3rd quarter, as Bloomberg News noted that hiring exceeded attrition.
The bank revealed expenses worth $15.5 in the last three months of the past year, and the figure is up $240 million compared to the previous quarter. The expenses were mainly incurred on technology, hiring people, and staff travel.
According to Alastair Borthwick, the Chief Financial Officer, unlike the others in the market that are on a laying off spree, Bank of America has no plans to lay off amidst an uncertain environment, revealed while talking to the reporters in the past week.
