Bad timing: Bank of America layoff news in Dallas
Bank of America's public relations team obviously wanted to make a nice splash in Dallas, and a time-honored way to do that is to make the CEO available to local media. Brian Moynihan met with reporters and others at the Dallas Morning News and delivered what one would expect about a great Texas city.
"It's a great market. It's growing. The economy has been stronger here on a relative basis than probably almost anywhere else in the country. They've done a great job over the years of diversifying the economy. It's not only benefiting by traditional things like oil and gas but also a lot of other things," Moynihan was quoted.
"It's an incredibly important market for us...It's an important market in terms of business, and it's a big market to continue investing in. And it's also an important market because we employ a lot of people."
The awkwardness of this statement became clear a bit later, when it was revealed that the bank intended to lay off more than 400 Bank of America employees in Dallas and Richardson by the end of September. The issue is that the bank has fewer customers in need of modifications. In disclosing the layoffs to the state, the bank said the reduction is "part of consolidation efforts in its Legacy Asset Servicing unit, which helps customers avoid home foreclosures." The bank also has suggested that some of the laid off workers might find employment elsewhere in the bank. The bank could certainly use some help in places like Florida and New York, where it has been under fire for shoddy modification and foreclosure performance.
All in all, this isn't a huge blunder. But the bank might have been a bit more sensitive to the timing of Moynihan's grand arrival in the city and the news of the layoffs.
- here's an article about the layoffs