In an effort to re-engineer a recovery and stop the massive sell-off of its stock, Bank of America reportedly plans to lay off 3,500 employees this quarter. Thousands more could lose their jobs in the coming months.

The largest bank in America is grappling with a $1 trillion problem-loan portfolio, a stock decline of more than 50 percent since January and a troubled economy. The pending layoffs are on top of 2,500 cuts made since the beginning of the year. Sources familiar with the situation said up to 10,000 workers may ultimately be affected.

“I know it is tough to have to manage through reductions,” Bank of America CEO Brian Moynihan wrote in a memo to the company’s senior executives. “But we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully.”

Moynihan will receive a base salary of $950,000 this year, but his pay package also includes $9.05 million in performance-based stock awards.