Report: Bank Of America Laying Off Workers In Sunrise
Legislative Session Coverage
SUNRISE (CBSMiami) – Bank of America has notified the state of Florida it plans to lay off more than 150 people at the company’s Sunrise mortgage center.
According to the South Florida Sun-Sentinel, the layoffs started last Friday and will continue through October 31 and are part of the company’s plan to downsize the mortgage operations workforce.
The layoffs are part of 30,000 firings the nation’s bank announced last September, according to the Sun-Sentinel.
BOA has struggled since it acquired mortgage giant Countrywide during the Great Recession. Countrywide was nearing bankruptcy and proved to be a financial disaster in the short term for BOA.
Still, Bank of America, like other major banks, has experienced a boom in the last two years. In the second quarter of 2013, BOA saw net income rise 63 percent to $4 billion compared to $2.5 billion in the second quarter of 2012.
Overall, BOA saw revenue increase to $22.7 billion from $22 billion last year.
Complicating the picture for BOA is rising interest rates are expected to take a bite out of the mortgage/real estate market. Bank of America generated more mortgages in the second quarter, but the financial gain from those loans fell and isn’t showing signs of improvement.