The bloodletting continues on the Street as two of the nation's largest banks, Bank of America Corp. and Wells Fargo & Co., start issuing pink slips to staff in New York and elsewhere. The closer to home -- meaning Wall Street -- cuts are likely to come from Bank of America, which
according to the New York Post is expected to eventually layoff 35,000 people over three years as it integrates Merrill Lynch.
Continue reading below
The Post reports "the bank is now kicking off a deep round of cuts," which will occur over the course of the month. However, the report doesn't offer much guidance on which parts of the bank are seeing the bloodletting. However, the usually snarky Dealbreaker blog offers the following dour details:
The canning campaign begun yesterday at Bank of Amerillwide proceeds at a pace, and is expected to continue through Friday and into next week. Apparently the employees relieved of their duties yesterday were given 3-months plus 2-weeks for every year of service, no bonus. According to one current (and, fingers crossed, future) worker, three rounds of cuts are planned.
Wondering exactly where the cuts are coming from? Again, Dealbreaker offers some unsubstantiated info:
Regarding the aforementioned cuts at Bank of Amerillwide, we're told that sales was "hit hard across all levels from analyst to MD" and that "2/3 of the BofA commodities desk" was relieved of it's obligation to come back after lunch. Door greeter Angelo Mozilo's job is said to be safe, for now.
While Bank of America is calling the shots from Charlotte, N.C., the South's banking capital is facing same pain that New York is feeling at the hands of a new out-of-town owner as San Francisco-based Wells Fargo prepares to winnow its staffing -- most likely from Wachovia Corp.'s old HQ.
John Stumpf, CEO of Wells Fargo, which acquired Wachovia, told the Charlotte Observer in an interview that jobs will be lost this year as it integrates Wachovia, but that minimizing job losses will be a priority.
"I can tell you there will be duplicative jobs and there will be job loss, I know that," Stumpf told the paper. "How many that will be I do not know."
Like Bank of America, the cuts won't all happen this year, but over three years. With layoffs looming at large banks over the next year and beyond, it certainly lends credence to the Federal Reserve Board's expectation that unemployment will rise through 2010. - Matthew Wurtzel
See story from the New York Post
See post from Dealbreaker
See Wednesday post from Dealbreaker
See Strumpf Q&A from the Charlotte Observer
