Bank of America is to cut a further 4,500 jobs, increasing the number of jobs lost since its FleetBoston Financial acquisition to 17,000. The extra job cuts will begin this month. Bank of America expects severance costs of $150 million over the next three quarters beginning with the third quarter of 2004. The Charlotte, North Carolina-based bank, which currently employees 178,000 people, said the cuts will occur across the company but primarily in support positions.
The bank had sparked anger in New England after the $48 billion acquisition soon led to job losses, including 700 positions in Massachusetts and the movement of two key Fleet units out of Boston. To counter that anger, the bank announced plans to move 100 executives and senior-level employees to Boston from around the country, primarily from New York, Baltimore and Charlotte. The bank said those personnel relocations would continue. Trower said the bank plans to increase the number of branches it has across the country to 6,000 by the end of 2005 from the current 5,800.