Recession: Bank of America to cut 35,000 jobs

Washington, Dec 12: In the wake of weaker business activities and the ongoing global economic crisis, the Bank of America announced that it has decided to cut as many as 35,000 jobs over the next three years. BoA's merger plans with Merrill Lynch& Co is still pending.

In a statement released BoA said, "Bank of America expects to have a final plan early in 2009 and estimates it will project reduction of approximately 30,000 to 35,000 positions over the next three years. The reductions are designed to eliminate redundancies created as a result of the merger with Merrill Lynch and to reflect the current recessionary environment."

The company said that the layoffs were from both the companies and will affect all lines of business and staff units adding that as many reductions as possible would be made through attrition. Company said, "Severance and other benefits will be provided for those associates whose jobs are eliminated and who cannot be offered another position."

In September, the US Federal Reserve had given a formal approval to the Bank of America for acquiring troubled financial services firm Merrill Lynch. Once the acquisition is completed, BoA would be the largest depository organisation in the United States, with total consolidated assets of about $2.7 trillion.

Both BoA and Merrill Lynch shareholders have approved the takeover and the transaction is likely to be completed on January 1, 2009.