Contractors face pay cuts, furloughs as Bank of America slashes costs

Several workers say they were informed last week

Bank says move tied to ongoing simplification of company

In an effort to boost profitability, Charlotte-based Bank of America is cutting back on spending for information technology contractors.

Several workers, who did not want their names disclosed, told the Observer that they were informed last week that their pay rate would be cut by 10 percent and that they would have to take a two-week, unpaid furlough.

“We made business adjustments with some of our strategic partners,” Bank of America spokesman Mark Pipitone said. “This ties directly to our ongoing focus on simplifying the company and delivering for our customers and shareholders.”

Pipitone said it was up to each firm’s discretion to “manage certain aspects of the adjustments.”

It’s unclear how many workers are affected and by how much the bank is reducing its contracting spending to meet year-end goals.

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