Bank of America to cut up to 35,000 jobs as part of Merrill Lynch Merger

December 11, 2008 by · Leave a Comment
Filed under: Industry News 

This job picture is not looking good.  With Obama talking about creating 2 million jobs in his first 4 years, what will that mean if we lose 2 million jobs before he gets into office?  I really feel bad for all these people getting laid off in this tough job market.

News:

Bank of America Corp said on Thursday it plans to eliminate 30,000 to 35,000 jobs over three years after it completes its purchase of Merrill Lynch & Co.  The cuts could affect about 11 percent of the combined companies’ roughly 308,000-person workforce. Bank of America employs about 247,000 people and Merrill about 61,000.

Bank of America said the expected cuts reflect the pending merger, as well as “the weak economic environment, which is affecting the level of business activity.”

It said the cuts will come from both companies and affect all business lines and staff units. Final numbers of cuts will not be determined until early 2009, and “as many reductions as possible” will come through attrition, the bank said.

The Charlotte, North Carolina-based bank announced the cuts less than four weeks after Citigroup Inc set plans to eliminate 52,000 jobs, or 15 percent of its workforce, by early 2009.

Shareholders of Bank of America and Merrill approved the merger on December 5. The transaction valued Merrill at about $20.5 billion as of Thursday’s close.

Bank of America shares closed Thursday down $1.78, or 10.7 percent, at $14.91, while Merrill shares fell $1.43, or 10.1 percent, to $12.67. The merger is expected to close on January 1, 2009, Bank of America said.

Source: Reuters

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