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Bank of America to Cut 12,500 Jobs
By PAUL NOWELL
AP Business Writer
CHARLOTTE, N.C. (AP) -- Bank of America Corp., newly merged with FleetBoston Financial Corp., said Monday it will cut 12,500 jobs - or nearly 7 percent of its work force - over the next two years.
Approximately 30 percent of the cuts will come through attrition, the Charlotte-based bank said, with the remaining jobs - about 8,750 - being eliminated through layoffs and vacancies that won&
39;t be filled.
The cuts will begin this month, as the company starts to notify affected employees from its combined work force of 181,000.
Several workers leaving Bank of America's headqu
art
rs in downtown Charlotte Monday evening were not aware of the companys plans. Loan officer Veronica Dawkins said she had not received any word from the company.
"There's been a lot of talk around the office, but no one has given me any indication whatsoever that I need to worry," Dawkins said. "I'm hoping it works out for everybody."
The completion last week of Bank of America's merger with Fleet created the nation's No. 3 bank with assets estimated at $966 billion.
With about 5,700 branches, the new bank's footprint reaches from California through the South and up to New England. In assets, the bank trails only Citigroup and another planned megamerger between Chicago-based Bank One and J.P. Morgan Chase.
Spokeswoman
Eloise Hale said the bank would not specify where positions would be eliminated, saying only that they will take place "corporation-wide."
"When we discuss job reductions, we ar
e ta
lking abou
t positions not necessarily people," said Marc Oken, transition executive for Bank of America. "As a large employer, we will conti
nue to create jobs over time. These are difficult decisions and we are committed to supporting our associates during this time."
Bank of America chief executive Ken Lewis has said he wants to achieve about $1.6 billion in cost savings by the end of 2005. The two banks don't have a large number of overlapping branches that can be closed, which is a major source of savings in many bank mergers.
Instead, the bank has said it expects to get about $650 million in savings from trimming overlapping operations and processes. For example, the bank will be able to consolidate headquarters for combined business lines, Lewis has said.
As part of its merger agreement, the company committed to maintain overall employment levels in New England.
Bank of America said it will attempt to find new opportunities within t
he bank
for workers affect
ed by the eliminated positions. According to the bank, it filled more than 37,000 positions last year through a combination of internal transfers and
external hires.
Bank of America shares rose 74 cents to close at $81.25, Monday on the New York Stock Exchange.
Bank of America has 100-year-old roots in California, where it financed Hollywood movies and the Golden Gate Bridge. It was bought by NationsBank Corporation, which adopted the Bank of America name and moved it to North Carolina in 1998.
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Bank of America to Cut 12,500 Jobs
By PAUL NOWELL
AP Business Writer
CHARLOTTE, N.C. (AP) -- Bank of America Corp., newly merged with FleetBoston Financial Corp., said Monday it will cut 12,500 jobs - or nearly 7 percent of its work force - over the next two years.
Approximately 30 percent of the cuts will come through attrition, the Charlotte-based bank said, with the remaining jobs - about 8,750 - being eliminated through layoffs and vacancies that won&
39;t be filled.
The cuts will begin this month, as the company starts to notify affected employees from its combined work force of 181,000.
Several workers leaving Bank of America's headqu
art
rs in downtown Charlotte Monday evening were not aware of the companys plans. Loan officer Veronica Dawkins said she had not received any word from the company.
"There's been a lot of talk around the office, but no one has given me any indication whatsoever that I need to worry," Dawkins said. "I'm hoping it works out for everybody."
The completion last week of Bank of America's merger with Fleet created the nation's No. 3 bank with assets estimated at $966 billion.
With about 5,700 branches, the new bank's footprint reaches from California through the South and up to New England. In assets, the bank trails only Citigroup and another planned megamerger between Chicago-based Bank One and J.P. Morgan Chase.
Spokeswoman
Eloise Hale said the bank would not specify where positions would be eliminated, saying only that they will take place "corporation-wide."
"When we discuss job reductions, we ar
e ta
lking abou
t positions not necessarily people," said Marc Oken, transition executive for Bank of America. "As a large employer, we will conti
nue to create jobs over time. These are difficult decisions and we are committed to supporting our associates during this time."
Bank of America chief executive Ken Lewis has said he wants to achieve about $1.6 billion in cost savings by the end of 2005. The two banks don't have a large number of overlapping branches that can be closed, which is a major source of savings in many bank mergers.
Instead, the bank has said it expects to get about $650 million in savings from trimming overlapping operations and processes. For example, the bank will be able to consolidate headquarters for combined business lines, Lewis has said.
As part of its merger agreement, the company committed to maintain overall employment levels in New England.
Bank of America said it will attempt to find new opportunities within t
he bank
for workers affect
ed by the eliminated positions. According to the bank, it filled more than 37,000 positions last year through a combination of internal transfers and
external hires.
Bank of America shares rose 74 cents to close at $81.25, Monday on the New York Stock Exchange.
Bank of America has 100-year-old roots in California, where it financed Hollywood movies and the Golden Gate Bridge. It was bought by NationsBank Corporation, which adopted the Bank of America name and moved it to North Carolina in 1998.
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