Bank of America job cull

Bank of America is cutting another 3,500 jobs, according to an internal memo, as the biggest US bank grapples with its $1 trillion problem-loan portfolio and growing economic concerns.

The job cuts, expected to be completed by the end of next month, are the latest in a series of lay-offs across the global finance industry. More than 60,000 job cuts have been announced in the last month by eight major banks, including HSBC, Royal Bank of Scotland, Barclays and UBS.

The Bank of America cuts are expected to occur across the globe and are certain to include the investment banking division BoA Merill Lynch, whose European, Middle Eastern and African operations are based in London where it has some 10,000 employees. Sources suggested the London operations may not be as hard hit as the US retail branches.

"The third quarter reductions in force are not part of the New BAC Project, through which employees and managers are working to transform policies, practices and organisations to better align to the company's customer-driven strategy," an internal memo stated. That project already included another 2,500 jobs going.

Executives at the bank are still discussing the range of cuts, but one person familiar with the situation said at least 10,000 jobs are likely to be eliminated as part of a wider review, the Wall Street Journal said in a report. Bank of America had about 280,000 employees at the start of 2011, according to its annual report.