Company mum about impact on Springfield; CEO wary about future.
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March 13, 2009
Layoffs have begun at Bank of America in Springfield and across the region as part of a work force reduction announced in December.
"The reductions are designed to reflect the current recessionary environment, as well as to eliminate redundancies created as a result of the (Jan. 1) merger with Merrill Lynch," Bank of America spokeswoman Diane Wagner said.
She said the company will not break out details about specific reductions in Springfield or other markets.
Company officials projected a reduction of up to 35,000 positions over the next three years.
The reductions are coming from Bank of America and Merrill Lynch, and affect all lines of business and staff units, the company said. Many reductions will occur through attrition.
Severance and other benefits will be provided for employees whose jobs are eliminated and who cannot be offered another position, the company has said.
Thursday, as federal lawmakers debated possible government takeovers, Bank of America CEO Kenneth Lewis told about 450 corporate leaders at a luncheon in Boston that nationalization of banks would be a "nightmare" that would further undermine confidence in the nation's financial system.
Lewis said a full-scale government takeover would "send shudders" through the investment community and is not necessary to stabilize the country's banking system, the Associated Press reported.
Lewis added, "It would also give the false impression that all banks are insolvent and investors would immediately start betting on which banks would be next, possibly creating a self-fulfilling prophecy," AP reported.
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