Bank of America to lay-off 1,200 here in Cuyahoga County
RAY ROBINSON | 9/1/2013, 9:45 a.m.
It can be a real drag to the state's economic outlook when a thousand jobs are lost at the stroke of a pen and the folks in Columbus suddenly begin to realize that the money that normally fills the coffers appears to be awfully low.
It can be equally as devastating to a city's ability to survive when 1,000 jobs are lost at the same company. This is the case in Beachwood right now.
Last week, representatives from Bank of America, announced that they would be eliminating 1,200 jobs here in their Northeast Ohio market. The jobs that are to be eliminated are aimed at 1,000 employees who work in their call center located in Beachwood. 200 additional positions will be eliminated at their Independence location as well.
According to Bank of America spokepersons, the jobs were created when homeowners were scrambling to re-finance their homes because of the extremely low re-finance rates that were available at the time. The interest rates were so low due to the downturn in the housing market and many homeowners were under water with their mortage loans.
Those rates have now risen and the rush to re-finance has slowed to the point where the people who were hired to service those individuals who were interested in and then eventually did re-finance, are no longer needed and will be laid-off in the very near future.
October 31st is the last day of employment for the Bank of America workers.
Not only will the two cities lose tax revenue from the displaced employees, but other nearby businesses feel the pain too. Local gas stations, restaurants and banks also suffer financially when companies move or get rid of large amounts of their customer base.