Early reports said that Bank of America (BAC) would whack about 10,000 employees after digesting Merrill Lynch. After that, Charlie Gasparino reported that the number would be more like 30,000 and today the company confirms: Up to 35,000 jobs will be cut over the next three years:
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.
Merrill: 50% Bonus Cuts, 30,000 Layoffs?