BofA to Cut 10,000 Investment Banking Jobs
Bank of America can be expected to cut at least 10,000 investment banking jobs as it moves to absorb Merrill Lynch, sources have told CNBC.
The layoffs will start before the end of the year and possibly as soon as this week.
The move comes amid very tough times for the banking sector. With the declining market and tight credit picture, profits are under intense pressure. And traditional work in the initial public offerings and mergers and acquisitions business has dried up. (Charles Gasparino discusses his report in the video)
U.S. bank stocks Monday suffered their biggest one-day decline on worries that an ongoing recession will cut jobs, tighten credit and prompt more writedowns in the sector.
Combined Bank of America and Merrill would have 260,000 employees. About 50,000 are in the banks' investment banking operations. The majority of the layoffs are likely to come from Merrill's side of the business.