Bank of America CEO Brian Moynihan on strategy for reducing headcount

Bank of America CEO Brian Moynihan, who has struck an upbeat tone on the economy in recent interviews, recently discussed the Charlotte-based bank's strategy for adjusting its headcount, which it is currently looking to do.

"We don't lay off people, but we have an ability to reshape our headcount pretty quickly just by the turnover that occurs," Moynihan said Dec. 6 during the Goldman Sachs 2022 U.S. Financial Services Conference, when speaking about his current approach to managing the bank's workforce numbers.

The bank had a little more than 213,000 employees as of Sept. 30, a nearly 4,000-person increase compared to the same time a year ago. Moynihan noted at the conference that BofA now has about 215,000 employees, but he said the bank needs to "run that back down.

Moynihan added that as employees leave BofA voluntarily, the bank moves workers from their current positions and retrains them in those open roles. Large companies like Bank of America Corp. (NYSE: BAC) aren't new to routinely losing and hiring new employees, which can take a toll on expenses.

CNBC reports that the attrition rate in the banking industry is typically at least 10% on an annual basis, though that can rise depending on the position.

BofA implemented a different workforce strategy earlier this year — one that involved pay. It raised its minimum wage to $22 an hour in June, a bump from $21 in October 2021. The hike is part of BofA's plan to increase its minimum wage to $25 per hour by 2025. The bank also gave employees cash and stock bonuses and enhanced benefits.

"We take a different attitude. We know we can absorb those teammates," Moynihan said at the conference. "... you can manage a headcount if you just get ahead and start working on it."

BofA, the city's largest bank by local deposits, had about 18,000 employees in the Charlotte area as of October.