Bank of America's approach to workforce management has been revealing itself over the past two years. Throughout 2023 and 2024, they've carefully orchestrated a series of small-scale layoffs while avoiding media attention and WARN notice requirements. In 2023, they trimmed roughly 7,500 positions through natural attrition and selective hiring freezes, dropping from 218,000 to 213,000 employees by September. The pattern continued in 2024, with targeted cuts including 20 investment bankers in Asia and a series of small team reductions focusing on high-paid, low-performing employees and automation-vulnerable roles. By November 2024, internal reports suggested plans for larger cuts targeting 12-18% of the workforce, particularly affecting employees resistant to return-to-office policies and those in redundant positions.

Now in 2025, Bank of America hasn't officially announced any new layoffs, maintaining their public stance of managing headcount through natural attrition. CEO Brian Moynihan continues this messaging, stating "We manage our workforce carefully, avoiding deep cutbacks unless absolutely necessary." The bank's financial health appears solid, with $6.7 billion in net income for Q4 2024, bolstered by strong performance in trading and wealth management. They even distributed over $1 billion in stock awards to most of their global workforce, covering employees earning up to $500,000 annually - about 97% of their staff.

While Bank of America's financial position remains strong, employees should stay alert to official communications and prepare for potential changes.

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What We Know About Bank of America's 2025 Layoffs

As of January 2025, Bank of America hasn't made any official announcements about mass layoffs. CEO Brian Moynihan has consistently emphasized managing headcount through natural attrition rather than large-scale cuts. In a previous interview, when asked about potential deep cutbacks, Moynihan's response was clear: "There'll be none."

However, internal discussions and market analysis point to significant operational changes ahead. Employee forums are buzzing with concerns about cuts tied to increased automation and stricter return-to-office policies. As one employee noted, "The push for five days a week in the office feels like a way to reduce headcount through attrition." Another shared, "Unofficially official — there are numerous discussions regarding working on a 5 day in office week."

These discussions stem from broader worries about an economic slowdown in 2025 and the bank's focus on protecting profit margins. The banking sector's growing adoption of AI and automation could reshape workforce needs, with industry analysts projecting $180 billion in annual savings across the banking sector from AI efficiencies. Like its peers, Bank of America might streamline operations where technology or outsourcing can reduce redundancies.

While specifics remain unconfirmed, some market observers and internal discussions have floated ambitious workforce reduction targets of 10-15% of Bank of America's staff - approximately 20,000-30,000 employees globally. However, these numbers seem unrealistic for outright layoffs given Bank of America's historical approach and public stance. More likely, the bank might attempt to reach these targets gradually through a combination of natural attrition, selective hiring freezes, and small, targeted cuts spread across different departments and locations - similar to their approach in 2023-2024. If these reductions do materialize, they would likely impact U.S.-based employees most heavily, with technology and operations roles facing particular scrutiny due to automation opportunities.

The timing might unfold as follows:

• Initial reductions could begin in February 2025, aligning with post-earnings adjustments
• A second wave might come in mid-year (June/July)
• Final adjustments could occur in late 2025 (October-December)

Areas potentially facing the largest impact include:

• Technology and operations roles
• Support staff in global markets
• Back-office functions

Understanding Bank of America's Previous Severance Packages

Recent Severance Trends

Bank of America's severance packages reflect its position as a leading financial institution, though specifics vary based on tenure, role, and timing. Here's what we know about their standard package components:

Base Severance

• Formula: Two weeks of base pay for each year of service
• Range: Minimum of 4 weeks, maximum of one year's base pay
• Payment Options: Choice between lump sum or scheduled payments

Bonus Treatment

• Timing Matters: Employees laid off near bonus distribution typically forfeit bonuses
• Exceptions: Some cases have included prorated bonuses
• Variability: No consistent policy on bonus inclusion

Benefits Coverage

• Health Insurance: Coverage continues through severance period via COBRA
• PTO Payout: Full compensation for unused vacation and sick days
• Career Support: Access to outplacement services and job search resources
• Retirement Benefits: Options to retain or roll over existing plans

Additional Components

• Stock Awards: Some cases allow prorated or continued vesting
• Role-Based Adjustments: Senior positions may negotiate enhanced terms

How Bank of America's Severance Stacks Up Against Competitors

Understanding the competitive landscape helps contextualize Bank of America's severance offerings. Here's how they compare to other major banks:

JPMorgan Chase

• Base Package: Includes a non-working notice period and severance pay
• Example Case: One employee received four weeks severance plus unused vacation
• Notice Requirements: Some roles require six months' notice before resignation
• Flexibility: Non-working notice period might reduce total severance

Citigroup

• Standard Practice: Generally offers two weeks per year of service
• Support Package: Includes standard elements like healthcare continuation and career services
• Consistency: Maintains relatively uniform practices across similar roles

Wells Fargo

• Base Package: Minimum of 8 weeks base pay for newer employees (under 3 years), or 2 weeks per year for longer-tenured staff (capped at 52 weeks)
• Notice Period: Standard 60-day paid notice with continued benefits
• Additional Benefits: Healthcare continuation, PTO payout, career transition services, with enhanced terms possible for director-level and above

Expected 2025 Severance Package Components

Based on past practices and industry trends, here's what Bank of America employees might expect from 2025 severance packages:

Financial Components

• Base Formula: Two weeks per year of service
• Limits: Four week minimum, one year maximum
• Notice Period: 60 days of regular pay and benefits (WARN Act requirement)
• Distribution: Options for lump sum or scheduled payments

Healthcare Coverage

• Duration: Continued coverage during severance period
• Format: COBRA with potential subsidies
• PTO Treatment: Payment for unused vacation/sick time

Bonus and Stock Considerations

• Annual Bonuses: Generally require active employment
• Stock Awards: Typically end at termination
• Exceptions: Some roles may receive prorated payments

Support Services

• Career Resources: Outplacement services and job search support
• Additional Help: Immigration assistance when needed
• Retirement Accounts: Ability to keep funds in Bank of America's plan or roll over to another qualified plan

Remember that specific terms can vary by role and circumstances. Review agreements carefully and consider legal consultation to understand your full rights.

Conclusion

While we await Bank of America's official announcements about potential 2025 layoffs, you can take action now to prepare. By sharing your past severance data, you'll help build a more transparent picture of banking industry practices. This collective knowledge strengthens everyone's ability to navigate career transitions effectively.

Bank of America has historically provided competitive severance packages, and we expect this trend to continue. If you receive a package, remember that comparing your offer against our database can help you understand its true value and potential negotiation points.

Most importantly, don't navigate this alone. Our community of finance professionals has been through similar transitions and shares insights daily. Together, we can turn uncertainty into opportunity and ensure everyone gets fair treatment during career changes.

Stay informed, stay prepared, and keep sharing your experiences. Your data helps others, just as theirs will help you.