Economy

Bank of America to cut jobs in global banking unit

Bank of America Corp. is cutting a few hundred jobs in its global banking and markets unit, and employees are being informed of the decisions this week, a person familiar with the situation said Monday.

The management team led by Tom Montag is cutting less than 5 percent of the unit's workforce in what is seen as a regular assessment of the business' needs, the person said. The unit continues to make hires in some areas and will have added more people in 2010 than it cuts, the person said.

The global banking and markets division, bulked up significantly by the 2009 Merrill Lynch & Co. acquisition, offers Wall Street-style services such as stock and bond underwriting, trading and merger advice. The business is based in New York, but has employees in Charlotte.

After boom times in much of 2009, the unit's net income fell to $927 million in the second quarter of this year from $3.9 billion a year earlier, as trading profits slumped. The business underwent major downsizing during the merger integration but has been hiring this year. In a presentation last week, chief executive Brian Moynihan said the unit has hired 800 people overseas since the merger took place, as Bank of America looks to grow its international revenue.

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