Bank of America came out after the markets closed Thursday and confirmed the number of jobs likely to go following the merger with Merrill Lynch. The bank said that between 30,000 - 35,000 jobs will go at the two firms in the next 3 years due to the merger and the current weak economic climate. Job losses in investment banking and global markets, however, are thought most likely to be done by the end of the first quarter.
Here's Bank of America's press release:
'Bank of America Corporation is working on a plan to eliminate a significant number of positions over the next three years reflecting the pending merger with Merrill Lynch & Co., Inc. and the weak economic environment, which is affecting the level of business activity.
While both factors will result in the elimination of positions, the company has not completed its analysis. 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. A final number will not be determined until early 2009.
The reductions are coming from both companies and affect all lines of business and staff units. Details as to specific reductions in communities or by business line have not been determined. As many reductions as possible will be made through attrition. Severance and other benefits will be provided for those associates whose jobs are eliminated and who cannot be offered another position.
The reductions are designed to eliminate redundancies created as a result of the merger with Merrill Lynch and to reflect the current recessionary environment.
Bank of America continues to do business actively with all of its client segments. It continues to benefit from a flight to safety, attracting deposits and new client relationships. In addition, the company continues to actively originate loans through all of its credit product lines.
Shareholders of both companies voted to approve the transaction last week and Bank of America is currently targeting a closing on Jan. 1, 2009'.
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