M&A

Bank of America Cutting 1,500 Jobs Following Merger

BoA unloads FleetBoston jobs as part of post-merger integration.
CBS Marketwatch and Ed ZwirnAugust 19, 2004

Bank of America is laying off some 1,500 workers as a result of its merger with FleetBoston Financial Corp, according to published reports.

The Charlotte, N.C.-based bank, which acquired Fleet in the spring, is planning on converting Fleet’s 1,500 branches to its own model, according to a Boston Globe report widely quoted by wire services, One branch manager who spoke on condition of anonymity told the newspaper that about one worker per branch would be cut.

Bank of America also plans to transfer some employees and to reduce hours of some staff members.

Bank of America, after completing its $48-billion acquisition of Fleet, temporarily maintained the Fleet name in the Northeast as it began integrating the two companies. This week, Bank of America began renaming Fleet branches in upstate New York before moving on to other parts of the Fleet territory over the next few months.

“As we roll out the model, there will be some job reductions in some centers, but there will also be increases in other centers,” Bank of America spokeswoman Eloise Hale said, declining to provide specific numbers.

Bank of America earlier had announced it would cut 12,500 jobs as part of the merger, but it was expected that the Fleet employees wouldn’t be affected. Fleet had about 47,000 employees before the merger.

In a July 14 conference call with analysts following the merger, CFO Marc Oken said Bank of America expects cost savings from the merger to total as much as $750 million by year’s end.