(Image source: Flickr)

BY MALLORY PERRYMAN
 

You're watching multisource business video news analysis from Newsy. 

 The nation’s biggest bank is gearing up for some big cuts.

Bank of America says it will cut 3,500 jobs before the end of the year.

HLN has more details.

Anchor (HLN): “The bank is restructuring to try and save money. Its stock has really been roughed up hard too in these past three weeks of financial turmoil. A lot of concern about the stability of the bank out there.”

The New York Times reports-- the move comes amid market fears -- and shareholders’ deepening dissatisfaction with the banking giant.

“...the chief executive of the bank, has said that he hopes to trim quarterly expenses by $1.5 billion... the job cuts by Bank of America may be only the start of a broader restructuring at the company...”

That may indeed be the case-- The Wall Street Journal reports...

“...one person familiar with the situation said at least 10,000 jobs are likely to be eliminated. That would amount to 3.5% of the bank’s work force.”

And KTTV explains-- the company has been struggling for awhile now.

Reporter (KTTV): “B of A has been hit like many other banks but especially Bank of America after it acquired Countrywide Financial in 2008 and the housing bubble burst and  they have never really been able to recover so top executives are saying all they have left to do is to cut.”

Analysts on CNBC dig a little deeper into the cuts -- one market expert saying, part of the problem is the way compensation is structured.

“There's a higher component of salary because so much of the bonus is all stock and that is proving to be difficult for many of these corporations as they look to cut costs. They have to take the people out because the cash outlay is larger than in the past.”

Moving forward -- another CNBC analyst says, perception is going to be just as difficult as the pocketbook to manage.

“And we're in a sort of negative feedback loop and Bank of America trying to right the ship and reduce expenses and get the business in line but same time with the perception of the situation looks dire.”

Bank of America stock is down more than 50 percent since January and the company is being sued by AIG.

Transcript by Newsy.