Bank of America is laying off nearly 1,200 employees in Ohio, FOX19 has learned. 98 of them work at BofA's facility on Governors Hill Drive in Cincinnati, which is called the Consumer and Small Business-Legacy Asset Servicing unit.
The 1,148 employees who are affected throughout Ohio won't have a job after October 31, according to letters to local leaders that were obtained by FOX19.
"After serious consideration, Bank of America has decided to consolidate and reduce staff" at those locations, wrote BofA's senior vice president of federal government relations, John Collingwood. He added that the layoffs will likely be permanent. None of the affected workers is represented by a union.
A Bank of America spokeswoman e-mailed FOX19 a statement attributing the layoffs here to fewer homeowners being delinquent on their mortgages and many others not refinancing because of higher interest rates:
"We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers," BofA's statement said. "Compared to peak levels in 2011, today we have fewer than one-third the numbers of customers who need the specialized programs and support of this team. These actions also reflect our ongoing efforts to streamline our facilities and align our cost structure with market realities, including declining refinance volume resulting from rising interest rates."
The layoffs break-down this way:
"Bank of America welcomes the opportunity to work with representatives of state, county and local services in assisting associates impacted," Collingwood wrote.
Bank of America is also making big news today after announcing it's selling its stake in a Chinese bank to clean-up BofA's finances back here at home.
Bank of America stock was at $14.34 in midday trading on Wednesday.