BofA to Cut 7,500 Jobs After Merger
Bank of America(BAC - Cramer's Take - Stockpickr) on Thursday said it expects to cut 7,500 jobs over the next two years as a result of its pending acquisition of Countrywide Financial(CFC - Cramer's Take - Stockpickr).
Charlotte, N.C.-based BofA said it expects to begin notifying affected employees in the third quarter. Cuts will occur in areas in which the two companies have "significant overlap, such as staff support," BofA said in a statement. Final decisions have not yet been made.
The deal is expected to close July 1.
Countrywide shareholders on Wednesday approved the deal, but the good news was perhaps overshadowed by lawsuits filed against the mortgage lender by California and Illinois. Attorneys general in both states accused Countrywide of deceptive business practices.
BofA shares closed down 6.8% to $24.81 Thursday. Countrywide shares slid 3.5% to $4.42.
http://www.thestreet.com/s/bofa-to-cut-7500-jobs-after-...m_cat=FREE&cm_ite=NA
Bank of America(BAC - Cramer's Take - Stockpickr) on Thursday said it expects to cut 7,500 jobs over the next two years as a result of its pending acquisition of Countrywide Financial(CFC - Cramer's Take - Stockpickr).
Charlotte, N.C.-based BofA said it expects to begin notifying affected employees in the third quarter. Cuts will occur in areas in which the two companies have "significant overlap, such as staff support," BofA said in a statement. Final decisions have not yet been made.
The deal is expected to close July 1.
Countrywide shareholders on Wednesday approved the deal, but the good news was perhaps overshadowed by lawsuits filed against the mortgage lender by California and Illinois. Attorneys general in both states accused Countrywide of deceptive business practices.
BofA shares closed down 6.8% to $24.81 Thursday. Countrywide shares slid 3.5% to $4.42.
http://www.thestreet.com/s/bofa-to-cut-7500-jobs-after-...m_cat=FREE&cm_ite=NA