Bank of America Corp. expects to slash about 7,500 jobs after shareholders approved its merger with Countrywide Financial Corp. yesterday.
The Charlotte, N.C.-based bank will lay off employees throughout the country, though final decisions on the specific groups and locations have not been made, the company said.
Most of the reductions, which are expected to result in “substantial” cost savings, will take place over the next two years. Employees will notified about their fate in the third quarter.
Bank of America agreed in January to purchase Calabasas, Calif.-based Countrywide in a $4 billion deal to bail out the troubled mortgage lender (InvestmentNews, Jan. 11) .
Bank of America expects to complete the acquisition on July 1.
Last September, Countrywide said it planned to cut 10,000 to 12,000 positions, or 20% of its employees, mostly in areas impacted by lower mortgage origination volume (InvestmentNews, Sept. 10) .
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