Post LaSalle merger, Bank of America to lay off 2,500 area employees
Bank of America and LaSalle Bank employees on Monday were informed about 2,500 Illinois workers will be laid off sometime in the next two years.
Bank of America spokesman Scott Silvestri said the layoffs are due to the Charlotte, N.C.-based bank's purchase of LaSalle, the Chicago-area's second largest bank, a deal expected to close in early October.
"As part of the transition, Bank of America expects to layoff 2,500 people," he said. "We wanted to inform our associates as early as possible, so we did so today."
Silvestri said the bank is not yet announcing which locations or business lines are being cut. But often during bank mergers, headquarters, back-office and jobs in unprofitable units are cut.
He said layoffs will begin in the first quarter of next year, he said.
Bank of America first announced its planned $21 billion purchase of Chicago-based LaSalle in April from its parent, ABN AMRO Holding NV, headquartered in Amsterdam, the Netherlands.
But the deal was delayed by ABN AMRO's own merger deals in Europe.
At the time, Bank of America said it was aiming for $800 million in savings.
In August, consulting firm Anderson Economic Group estimated as many as 10,500 people in the Chicago-area alone could be laid off. It predicted the economic impact on the area could reach $780 million by 2009.
Monday's announcement is the first time Bank of America has confirmed a target number.
Silvestri said after the layoffs, Bank of America will have about 8,000 Illinois employees. Currently, LaSalle Bank has about 8,000 employees in the state.
The bank also expects to layoff 1,500 people in Michigan, according to the company.
The transaction would give Bank of America 411 branches and 1.4 million retail customers in the Chicago area, Michigan and Indiana.
Before the merger deal, Bank of America had 56 branches in the Chicago area.
LaSalle posted earnings of $1 billion in 2006 with 141 branches and a 14.1 percent share of deposits in the Chicago metropolitan region.
LaSalle was established in 1927 as the National Builders Bank of Chicago.
Bank of America spokesman Scott Silvestri said the layoffs are due to the Charlotte, N.C.-based bank's purchase of LaSalle, the Chicago-area's second largest bank, a deal expected to close in early October.
"As part of the transition, Bank of America expects to layoff 2,500 people," he said. "We wanted to inform our associates as early as possible, so we did so today."
Silvestri said the bank is not yet announcing which locations or business lines are being cut. But often during bank mergers, headquarters, back-office and jobs in unprofitable units are cut.
He said layoffs will begin in the first quarter of next year, he said.
Bank of America first announced its planned $21 billion purchase of Chicago-based LaSalle in April from its parent, ABN AMRO Holding NV, headquartered in Amsterdam, the Netherlands.
But the deal was delayed by ABN AMRO's own merger deals in Europe.
At the time, Bank of America said it was aiming for $800 million in savings.
In August, consulting firm Anderson Economic Group estimated as many as 10,500 people in the Chicago-area alone could be laid off. It predicted the economic impact on the area could reach $780 million by 2009.
Monday's announcement is the first time Bank of America has confirmed a target number.
Silvestri said after the layoffs, Bank of America will have about 8,000 Illinois employees. Currently, LaSalle Bank has about 8,000 employees in the state.
The bank also expects to layoff 1,500 people in Michigan, according to the company.
The transaction would give Bank of America 411 branches and 1.4 million retail customers in the Chicago area, Michigan and Indiana.
Before the merger deal, Bank of America had 56 branches in the Chicago area.
LaSalle posted earnings of $1 billion in 2006 with 141 branches and a 14.1 percent share of deposits in the Chicago metropolitan region.
LaSalle was established in 1927 as the National Builders Bank of Chicago.
Labels: Bank of America, Chicago, Illinois, LaSalle, layoffs
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