 Job cuts are part of saving $1.6bn |
Bank of America has said it is to cut 12,500 jobs over the next two years to streamline its business after its recent merger with FleetBoston. The $47bn (�25.8bn) tie-up created the third-biggest US lender with assets of $1 trillion and 5,600 branches.
Bank of America said that 8,750 staff would lose their jobs, while roughly a third of the job cuts would be by natural wastage.
The 12,500 jobs amount to 7% of the merged bank's combined workforce.
The newly-formed Bank of America and Fleetboston group stretches from New England to California and controls just under 10% of the country's total deposits.
Bank of America chief executive Kenneth Lewis promised before 1 April merger that it would produce savings of $1.6bn.
"Decisions around reductions will be determined on maximising our ability to run the combined organisation. We are structuring the company to meet the best needs of our customers," said Bank of America spokeswoman Eloise Hale.
The mammoth merger is part of trend in the US banking sector, as lenders combine to compete with Citigroup, the biggest US bank.
JP Morgan Chase and Bank One are preparing to join forces to seize the number two slot in the US market.
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