Bank of America closing child care centers

Bank of America closing child care centers

Bank of America closing child care centers

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by ANDREW DUNN / The Charlotte Observer

WCNC.com

Posted on September 24, 2012 at 5:11 PM

CHARLOTTE, N.C. -- Bank of America is shutting down its child care centers around the country, including its location in Charlotte, as the bank continues to cut costs.

The Charlotte bank’s 10 centers will close at the end of June, according to a letter obtained by the Observer. The letter says the move was made “in order to focus on programs that are broadly accessible to employees.”

The move is the latest example of the bank chipping away at employee benefits. Over the summer, Bank of America froze its employee pension plans, instead opting to contribute a percentage of the employee’s salary to his or her 401(k).

The bank has also been aggressively cutting jobs across the company, working toward a total of 30,000 fewer jobs as set out in an announcement last year.

At the end of the second quarter, Bank of America reported having 275,500 full-time employees, down about 5 percent from its peak last year. The Wall Street Journal reported last week that the bank was speeding up its job cuts with a target of 16,000 by the end of this year.

Small number of employees


The bank confirmed Monday that it was closing the child care centers, where the bank offered subsidized care. The bank said the closings were announced well in advance to give employees a chance to make other arrangements. The bank said it would affect less than 1 percent of its workforce, or less than 2,750 workers.

The bank’s child care centers are operated by Bright Horizons, which told its employees of the changes Friday, the letter said.

Bank of America’s Charlotte child care center is uptown on North Poplar Street. It also has centers in Jacksonville, Fla. and New York City, among other locations. It is unclear what will be done with the buildings.

Last week, Bank of America was once again named to Working Mother magazine’s annual list of the country’s best companies for working moms. It made the top 10 list this year, in part because of its day care centers.

Bank of America will be rolling out a back-up child care program in January, in which parents whose primary caregiver is not available can drop their children off at a Bright Horizons center.

The bank also maintains a benefit program that reimburses employees who make less than $50,000 up to $240 per month, per child for child care expenses.

Read more here: http://www.charlotteobserver.com/2012/09/24/3554189/bank-of-america-closing-child.html#storylink=cpy

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