Bank of America cuts about 2,000 jobs as AI trims coding work 30%

Bank of America signals material workforce change from AI adoption

Bank of America is telling investors and the market that artificial intelligence is materially reducing routine coding work and reshaping certain control functions across the bank. The firm reports that AI techniques cut coding tasks by roughly 30%, enabling the bank to eliminate about 2,000 positions — a reduction that is concentrated in its audit team. The bank frames the move as an operational efficiency driven by automation of repetitive workflows rather than a broad strategic shift away from client-facing services.

Executives present the reduction as part of a transition in how work is performed, with routine programmatic tasks shifting to AI-assisted systems and remaining staff redeployed into oversight, exception handling and higher-value activities. Bank of America is emphasising that these changes support its ability to sustain service levels across a large branch and digital network while maintaining required controls and compliance frameworks. The bank is also positioning the efficiency gains as consistent with its ongoing capital-allocation priorities.

The announcement underscores a wider trend in the financial sector where firms are quantifying AI-driven productivity improvements and using them to recalibrate headcount in back-office and processing functions. For Bank of America, the messaging balances operational savings with commitments to maintain financial strength and client service, noting continued investments in digital capabilities to support consumers, small businesses and institutional clients.

Board action and capital priorities

Separately, Bank of America’s board declares a regular quarterly cash dividend of $0.28 per common share payable March 27, 2026, and a $1.75 dividend on its 7% Cumulative Redeemable Preferred Stock, Series B, payable April 24, 2026. The bank frames these actions as reflecting ongoing capital-allocation priorities and its intent to return capital while preserving capacity to support lending and operations.

Sector context: peers report automation gains

The bank’s disclosures arrive as other large corporations report tangible AI productivity wins. Logistics firm C.H. Robinson is citing dramatic reductions in processing times and headcount for certain functions, while Costco reports early AI use improving pharmacy inventory to over 98% stock levels — signalling that major firms across industries are increasingly converting AI pilots into measurable operational improvements.