October 7, 2004
By Jesus Sanchez, Times Staff Writer
LA Times
Bank of America today said it will lay off about 4,500 workers nationwide as it combines operations in the wake of its merger with FleetBoston Financial.
The job cuts will begin this month, and Bank of America, one of the nation's largest financial companies, estimates they will cost $150 million in severance payments. The reductions amount to 2.5% of the company's 178,000 workers.
It was not clear how many jobs will be lost in California, where Bank of America employs about 40,000 people. Bank officials could not be reached for additional comment.
On the New York Stock Exchange, Bank of America shares were down slightly in early afternoon trading.
Bank of America, which is headquartered in Charlotte, N.C., said the layoffs were made after a reorganization last month simplified the bank's operating structure. The job cuts "ensure the company is operating as efficiently and effectively as possible," Bank of America said in a statement.
The layoffs announced today are in addition to 12,500 jobs cuts announced in April, when Bank of America completed its $48-billion acquisition of Boston-based FleetBoston.
The new round of layoffs will be made companywide and primarily involve positions that have little or no customer contact, Bank of America said.
Charlotte, N.C.-based NationsBank bought San Francisco's BankAmerica for $57 billion in 1998, taking the BofA name and setting up the new company in North Carolina.
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