BEACHWOOD, OH — Bank of America confirms that more than 1,000 people in Greater Cleveland will lose their jobs when it closes two offices in Beachwood and Independence.
The closings will eliminate 1,000 jobs in Beachwood and about 50 in Independence. Approximately another 100 jobs will be lost in Cincinnati. Statewide, the total is expected to approach 1,200 jobs lost.
The Beachwood positions are a combination of about 650 jobs related to mortgage services and about 350 other banking jobs.
“We continue to reduce the size of our mortgage servicing operations in line with successful reductions of our portfolio of delinquent mortgage customers,” Bank of America said in a statement.
The jobs are primarily linked to a “settlement center,” where banks write and finalize loans.
The recent increase in mortgage rates has dramatically reduced the number of people re-financing their homes, which has reduced the demand for jobs linked to writing loans.
The company says it remains “committed to Ohio and continues to refine our business model to account for changes in the marketplace.”
Beachwood Mayor Merle Gorden released the following statement Thursday:
While we are always very disappointed to hear of any job cuts, we view this as a temporary setback. The Cleveland Clinic has thriving operations in Beachwood and we are optimistic that they might be able to expand into this space. As such, we will engage very soon in conversations with the Cleveland Clinic to review the feasibility of that, and also to determine whether there could be a plan to transfer some of the affected employees into any new jobs that are created.
The job reductions will take place through the end of October.