Bank of America Cuts 4,000 Jobs

Bank of America announced today that they would layoff about 2,500 employees in Illinois and about 1,500 in Michigan over the next two years. This was in connection with their $21 billion purchase of LaSalle Bank Corp from Dutch bank ABN AMBRO Holding NV. In an interview today spokesman Scott Silvestri said “We’re buying LaSalle with the goal of growing the combined organization,” & that “the layoffs are a necessary first step toward meeting that long-term goal.” These cuts are intended to help the second largest US based bank save approximately $800 million by 2009.

The LaSalle merger is expected to close in early October having received approval from the US Federal Reserve on September 14th. Bank of America acquired from LaSalle about $160 billion in assets, 411 branches, 1,500 automated teller machines and 1.4 million customers. This gives Bank of America about $1.7 trillion in assets ranking just behind Citigroup Inc.