Bank of America Could Cut 4,000 Jobs: Report
A taxi drives by New York's Time Square brach of Bank of America in New York, December 11, 2008. Bank of America said Thursday it expects to cut up to 35,000 jobs over the next three years amid a sharp economic slowdown stemming from financial turmoil and its acquisition of Merrill Lynch. "Bank of America expects to have a final plan early in 2009 and estimates it will project the reduction of approximately 30,000 to 35,000 positions over the next three years," the Charlotte, North Carolina based bank said in a statement. AFP PHOTO/Emmanuel Dunand (Photo credit should read EMMANUEL DUNAND/AFP/Getty Images)
Updated at 3:28 PM CDT on Tuesday, Jan 20, 2009
Bank of America may slash as much as 4,000 jobs in its capital markets units starting this week, the Financial Times reported on its Web site quoting executives familiar with the matter.
The cuts are expected to be in New York and reflect the consolidation of the bank’s sales and trading businesses after it bought Merrill Lynch three weeks ago.
The capital markets headcount of the combined banks is expected to be reduced by between 30 and 40 percent, meaning the number of job cuts could reach about 4,000, a Merrill executive told the paper.
Bank of America Securities employs between 4,000 and 5,000 people, and at least as many are believed to work in Merrill's capital markets divisions, bank executives said.
Last week, Bank of America (NYSE: bac) received a federal backstop against $118 billion of bad assets it holds, as well as $20 billion in fresh government capital, as part of an aid package designed to help it absorb Merrill Lynch.
Fourth-quarter losses at Merrill Lynch were around $15 billion.
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Published at 11:09 AM CDT on Jan 20, 2009