Bank of America to cut 3,000 jobs in fourth quarter

CHARLOTTE, N.C., Oct. 24 (UPI) -- A Bank of America spokesman said the U.S. financial giant was cutting jobs to match a reduction in delinquent loan processing and lower refinancing demand.

The Wall Street Journal reported Thursday that 1,200 employees have already been informed their jobs are ending. The bank intends to cut 3,000 jobs in the fourth quarter to keep in step with slow demand for refinancing and a smaller delinquent loan portfolio, the Journal said.

The bank is also aiming at cutting another 3,000 jobs in loan servicing, the Journal said.

Many of the jobs were created to deal with an increase in services required to deal with delinquent loans that were purchased along with its 2008 acquisition of Countrywide Financial, the Journal said.

"As we continue to resolve the needs of customers with delinquent loans, we are reducing the size of the operations that support these specialized programs," the bank spokesman said.

"Additionally, in line with the industry, we are realigning our cost structure in response to lower customer demand for mortgage refinancing," the spokesman said.