Bank of America plans to axe 10,000 jobs

A brief post this one.

Bank of America has said that it will cut 10,000 jobs (10.5% of its workforce) in the first phase of its restructuring plan.

This will save the company $5bn per year.

Why comment on this? It is surely a normal thing to do?

Well, yes. And so it is interesting because it reveals the impact of the things we take for granted. (Our unconscious thinking.)

First, it is interesting that 10,000 jobs will save $5bn per year. That is $500,000 per person. These are no ordinary jobs being cut.

Second, the paradigm of ‘normal’ is that 10,000 people will find their income fall to zero, while the (just under) 90,000 who remain will retain their salaries.

And third, this cut will have a significant impact on an economy that is already struggling: 10,000 more people will cut back on their spending, equivalent to around $5bn per year.

So the effect of our ‘normal’ paradigm is significantly negative for the 10,000 individuals who are part of the firm; it is significantly negative for the economy that the firm is part of; it is probably also significantly negative (psychologically) for the people who still have jobs with BofA; and yet the way we do accounting, the paradigm we have invented for money, makes it appear essential for the health of the firm.

Perhaps there could be a different paradigm, a different way of operating, that would be better for all?

We believe there is a better way — better for the economy, better for the planet, better for the billionaires and better for the ordinary people — and you can read about it in our discussion of George Magnus’s recent comments, in the previous post.


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