Bank of America plans to axe 7,500 jobs as it is all set to acquire Countrywide Financial Corp. The value of the takeover is estimated to be $4-billion. The acquisition is believed to be over by next week. However, the bank said that this move wont affect its call center in Ottawa. Cuts will basically arise from the verticals like home equity, mortgage and insurance operations, which employ approximately 60,000 people or 12.5% of its total workforce.
What astonished me, if they had resizing in mind, why did they hire managers from rival companies?
The Bank however assuring its employees stated that workers will be generously 
compensated. It has also said that working closely with local and state officials it will help sacked employees find new jobs.
I am a long time holder of Bank of America Stock and I have continued to be a supporeter of the institution. My one continuing objuection has been not their continuing aquisition of expanded diverse investment diversifacation. My objection has always been that the outcome of all of these aquisitions has been the elimination of employees in the aquited assets. I will always agree with wise and diverse investment by both corporations and individuals. But it can not come at the expence of the nations economy as a whole. I thusly continue to oppose the aquisition of Countrywide by Bank of America as bad for B of A and bad for America as whole.
Posted by: desktoparchitecture | June 30, 2008 7:27 PM | Permalink to Comment