Bank of America announces 35,000 cuts

By John Hill on December 12, 2008 11:24 AM |

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Bank of America plans to reduce its workforce by more than ten per cent over the next three years.

The corporation - which employs around 1,700 people at its European HQ in Canada Square - cited the merger with Merrill Lynch and "the weak economic environment" as reasons for the move.

The cuts are expected to hit all areas of the bank, although representatives from Bank of America have revealed they hope many of them will be achieved through attrition. It will not decide where to trim its 308,000 worldwide roster until the new year.

Many of its Wharf neighbours have already announced their own adjustments to the economic downturn. Citigroup revealed plans to cut 52,000 jobs worldwide last month, while Morgan Stanley, Credit Suisse and HSBC have all made moves to reduce their workforces in the last few weeks.

Bank of America also has the task of absorbing Merrill Lynch workers and operations after its rescue of the company in September. On the day that Lehman Brothers filed for bankruptcy, Bank of America agreed a £27.9billion deal to buy-out the City-based bank, which employs 61,000 staff worldwide. Shareholders from both companies agreed to the terms of the deal last week, and BoA is currently aiming to close the deal on New Year's Day.

The move has stirred speculation that Bank of America may be planning to leave its 25,000 square metre Wharf home for the City. It arrived on the estate in 2003, and presently sub-lets its premises from Credit Suisse, but may be tempted by Merrill Lynch's home in King Edward Street, which boasts two of Europe's largest trading floors.

A spokeswoman confirmed the bank were currently weighing up its options, but would not be making a final decision until its study had been completed.