Who said that Corporate America is steady and guaranteed? Certainly not the 30,000 employees of BofA who didn’t expect a quick downward spiral in the company. It’s true that the economy is unstable, houses are in foreclosure and households are barely making ends meet and now this. Since the last economic crisis in 2008 there have been concerns of a second recession. The elimination of jobs with BofA is proof that most jobs aren’t returning.
Bank of America said Monday that it plans to eliminate 30,000 jobs as part of a plan to save $5 billion. The announcement came after Chief Executive Brian Moynihan outlined the bank’s strategy at an investor conference in New York. BofA has already disclosed plans to eliminate a total of 6,000 jobs this year. And it recently announced a management shakeup that effectively will split the bank into two units: one serving consumers and one serving commercial clients.
With the recent disclosure of layoffs, how will it affect its customer service? How will the morale of its employees remain positive knowing they will soon be out of employment?
Since the company is doing “what’s in the best interest” of its balance sheet, consumers should see a rise in the company’s stock. Is the bottom line what’s really important today? Well, it seems that it is. We will definitely notice an increase in foreclosure, longer lines in the unemployment office and stagnant numbers in adding to the job market.
What are ex-employees to do now?
During and after the Great Depression there was an increase in the number of entrepreneurs. We’ve heard numerous times that in order for this country to rebuild it must stand on the shoulders of small businesses. This is an opportune time for people to create a path for oneself and move forward with the best that is given.
In the meantime, this is an example that no position in any company is guaranteed. While you are employed you must create a plan to save at least 12 months of emergency fund. As a personal financial expert, I never recommend 3-6 months. The average unemployed person in America has been looking for work for 39.7 weeks, or more than nine months.
“Love yourself enough to support yourself.”
Property of SMG, LLC
Reported by Bahiyah Shabazz, MBA