In July, the firm reported a record quarterly loss after agreeing an $8.5bn (£5.2bn) settlement related to sub-prime mortgages. The Wall Street Journal (WSJ) and New York Times say the job cuts at the biggest US bank by assets might eventually exceed 10,000.
According to its latest annual report the bank had about 280,000 employees at the start of 2011. Bank of America spokesman, Scott Silvestri, said: “The company regularly assesses the efficiency of its businesses and at times is going to make adjustments to meet the opportunities that are in the marketplace.”
The initial 3,500 job cuts will be spread across the bank’s business including investment banking and trading. The bank’s share price has fallen by nearly 50% so far this year, and it was one of the biggest fallers overnight on Wall Street, seeing its price fall by 5.8%.
On Monday, the bank said it planned to sell its $8.6bn Canadian credit card portfolio to TD Bank Group.
It also wants to exit its UK and Irish Republic credit card businesses, and will either sell or wind down those operations.