The Bank of America, BoA intends to make itself as the new world’s largest bank, but it will come not without collateral damages. And the damage will not look pretty.
The bank, which acquired Merrill Lynch on the day Lehman Brothers went bust in September, announced that up to 35,000 jobs will be cut in the next 3 years. All divisions and business units will be affected with the job cut.
Merrill Lynch acquisition involves a $50 billion rescue deal, with the result of the merger seeing a new, combined workforce total of more than 300,000 employees worldwide. Prior to the merger, Bank of America had close to 250,000 employees while Merrill Lynch had 60,000. The 35,000 figure represents about 11% of the new total employee size.
The acquisition will also turn BoA as America’s largest bank by asset. It will double its investment banking business, as well as own the largest retail brokerage business. Bank of America’s rival, Citibank recently announced a layoff of 75,000 people.
While the final details of the layoff will only be released next year, any impending news shall be deemed as bad.