Bank of America (BAC) is planning to lay off about 2,100 of its employees and shut down 16 shutter mortgage offices.
Bloomberg reports that Bank of America — the second-largest U.S. lender — is reacting to the decreasing demand for home loans and eliminating the jobs of employees who process home loans. The lack of interest for home loans comes as a result of rising interest rates that have scared away people looking to take out mortgages on their homes.
The company is set to lay off about 400 workers in a suburban Cleveland call center and many other of their Virginia, Washington and Texas employees. Bank of America is expected to eliminate these jobs by Oct. 31.
Bank of America isn’t the first major bank in the U.S. to cut back on jobs related to home loans as Wells Fargo (WFC) and JP Morgan Chase (JPM) could end up eliminating 2,300 and 15,000 jobs respectively.