Bank of America will cut 30,000 to 35,000 jobs over the next three years.
The Charlotte, N.C.-based bank says the job cuts reflect the weak economic environment and its pending merger with Merrill Lynch. It says a final number of projected job cuts will be finalized in early 2009.
Merrill Lynch shareholders and Bank of America shareholders approved the bank’s acquisition of Merrill Lynch last week. The all stock takeover, originally valued at $50 billion, is now worth about $19 billion, as Bank of America’s stock declines.
Bank of America now says it expects to close the merger Jan. 1, 2009.
“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 said in a statement.
Bank of America (NYSE: BAC) says the cuts will take place at both companies and be across the board. It will make as many of the cuts as possible through attrition.