Bank of America (NYSE: BAC), the Charlotte based banking giant, plans to close its Fresno call center in August 2013.
Jennifer Darwin, a corporate spokesperson with Charlotte, N.C.-based Bank of America, confirmed the closure, but declined to say how many workers would be affected. The layoffs at the call center will be upwards of 700 jobs, according to social media posts on the topic. Darwin said the 700 figure is a “bit high”, and declined to state if employees would receive any sort of severance benefits. The bank does have other operations in the Central Valley region where some of the staff might be able to be rehired into. “We are really focused on trying to support employees through this change,” Darwin said. The company originally opened the call center in 200, with 475 jobs at the time.
Darwin added that the closure is part of an overall strategy for the bank in “simplifying and streamlining” its operations. The Fresno call center handles consumer banking questions from customers. Employees were notified of the layoffs yesterday. Tamico Thomas with the Fresno Regional Workforce Investment Board said her office has heard about the impending layoffs, though Bank of America has yet to file required notice with the state Employment Development Department, she said. Thomas said certain employers are required to file notice of layoffs 60 days before they become effective, according to state law. Thomas, whose Rapid Response Team provides assistance for workers facing layoffs, said her team is poised to provide Bank of America employees help including career counselling, resume preparation, unemployment insurance assistance and labor market information.
The company has closed at least two other call centers in the recent past, according to published reports. In November 2010, the company announced the closure of a 300-employee call center in Wichita, Kan. by mid-2011. In February 2012, B of A confirmed that it planned to close a 200-employee call center in Orono, Maine, in October.
The layoffs in Fresno are part of a larger overall strategy for the firm, which aims to cut 16,000 jobs by the end of this year. According to a September Wall Street Journal report, the cuts amount to 6% of the bank’s workforce. Layoffs and bonus cuts are sweeping across Wall Street firms, as the banks continue to struggle their rebound from the depths of the financial crisis. Looming regulatory reforms, coupled with slow growth in Europe and fears of a fiscal cliff meltdown leaves trading thin across financial markets. The Fresno layoffs for Bank of America reflect a small component of a larger overall trend, but will be problematic for the local region, already struggling in the weak economy.
