Merrill Chief Thain Expects `Thousands' of Job Cuts
Started by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008
Discussion about
Oct. 20 (Bloomberg) -- Merrill Lynch & Co. Chief Executive Officer John Thain said he expects ``thousands'' of job losses from the bank's $50 billion takeover by Bank of America Corp. Most of the cuts will fall in information technology, operations and finance, Thain, 53, said in a Bloomberg Television interview in Dubai today. Jobs won't be eliminated in the fixed income and commodities... [more]
Oct. 20 (Bloomberg) -- Merrill Lynch & Co. Chief Executive Officer John Thain said he expects ``thousands'' of job losses from the bank's $50 billion takeover by Bank of America Corp.
Most of the cuts will fall in information technology, operations and finance, Thain, 53, said in a Bloomberg Television interview in Dubai today. Jobs won't be eliminated in the fixed income and commodities divisions, he said.
``We haven't mapped it out in terms of actual number of people, but we are committed to saving $7 billion across the combined platforms, and that will be a challenge,'' Thain said. ``Between our two companies it will be clearly thousands of jobs.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=alJ42HVGz7Ik&refer=home[less]
Response by LP1
over 17 years ago
Posts: 242
Member since: Feb 2008
they haven't mapped it out yet? Insiders tell me it's happening this week.
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Response by LP1
over 17 years ago
Posts: 242
Member since: Feb 2008
IT and Ops cuts -- once again they kick the dog. Those people are hardly the high paid people at ML. You have to cut 10 of those jobs for every 1 inv banker/sales trader/front office/snr mgr job.
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Response by stevejhx
over 17 years ago
Posts: 12656
Member since: Feb 2008
A lot of what doesn't get eliminated will be moved to Charlotte, where it's cheaper.
The days of Wall Street dominance are over: Wells Fargo is based in San Francisco, Bank of America in Charlotte. Only JPMorgan is based here, and with the purchase of Washington Mutual they might move a lot of their retail operations to Seattle.
I don't count C.
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Response by 80sMan
over 17 years ago
Posts: 633
Member since: Jun 2008
LP1 with the merger you'll have 300 people working on real-time data systems and 800 people working on the web interface for clients. Not to mention the 2,000 people working on risk management systems which performed oh-so-well. With the level of business expected over the next few years I think these banks can go back to the green general ledger sheets and HP12-C without much trouble.
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Response by LP1
over 17 years ago
Posts: 242
Member since: Feb 2008
80's man, for sure there is overlap with the merger. But please, don't blame technology, quants or operations for a failure in risk management. The models work, it was the management that ignored the results.
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Response by ubbatubba
over 17 years ago
Posts: 124
Member since: Sep 2008
any bank that dips into the bailout should be forced to remove a minimum of 20% of management. now there's socialism that we can all get behind.
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Response by JuiceMan
over 17 years ago
Posts: 3578
Member since: Aug 2007
Downtown Charlotte sucks. It tries really hard, but its like visiting one of those Epcot center streets.
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Response by Deuce
over 17 years ago
Posts: 6
Member since: Oct 2008
stevejhx, easy on the predictions of the complete downfall of Wall Street. While it will be smaller and certainly more consolidated, the investment banking arms of most banks will still be based in NYC. Almost all foreign banks will have their US presence in New York (CS, DB, UBS, SG, Barclays, BNP) and the main US banks will as well (GS, MS, C, JPM). Wells Fargo is not an investment bank and BOA was largely a fringe player in investment banking as well.
You do have many valid points, but lately you come off as so desperate to prove your "thesis" that you seem to be losing objectivity. I think most people will already agree RE in New York is due for a rather large adjustment, myself included.
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Response by JuiceMan
over 17 years ago
Posts: 3578
Member since: Aug 2007
"that you seem to be losing objectivity"
stevejhx losing objectivity? How can you lose something you never had?
We got the rufus asshole and his Chicago superiority, not to mention his racism
and now we got stevejhx and his Charlotte superiority, and I think most of us know the rest of his problems
stevejhx
1 day ago
ignore this person
report abuse A lot of what doesn't get eliminated will be moved to Charlotte, where it's cheaper.
The days of Wall Street dominance are over: Wells Fargo is based in San Francisco, Bank of America in Charlotte. Only JPMorgan is based here, and with the purchase of Washington Mutual they might move a lot of their retail operations to Seattle.
I don't count C.
Ignored comment.
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Response by nyc10022
over 17 years ago
Posts: 9868
Member since: Aug 2008
I think we have it backward... who said NYC would be worse off with less bankers....?
they haven't mapped it out yet? Insiders tell me it's happening this week.
IT and Ops cuts -- once again they kick the dog. Those people are hardly the high paid people at ML. You have to cut 10 of those jobs for every 1 inv banker/sales trader/front office/snr mgr job.
A lot of what doesn't get eliminated will be moved to Charlotte, where it's cheaper.
The days of Wall Street dominance are over: Wells Fargo is based in San Francisco, Bank of America in Charlotte. Only JPMorgan is based here, and with the purchase of Washington Mutual they might move a lot of their retail operations to Seattle.
I don't count C.
LP1 with the merger you'll have 300 people working on real-time data systems and 800 people working on the web interface for clients. Not to mention the 2,000 people working on risk management systems which performed oh-so-well. With the level of business expected over the next few years I think these banks can go back to the green general ledger sheets and HP12-C without much trouble.
80's man, for sure there is overlap with the merger. But please, don't blame technology, quants or operations for a failure in risk management. The models work, it was the management that ignored the results.
any bank that dips into the bailout should be forced to remove a minimum of 20% of management. now there's socialism that we can all get behind.
Downtown Charlotte sucks. It tries really hard, but its like visiting one of those Epcot center streets.
stevejhx, easy on the predictions of the complete downfall of Wall Street. While it will be smaller and certainly more consolidated, the investment banking arms of most banks will still be based in NYC. Almost all foreign banks will have their US presence in New York (CS, DB, UBS, SG, Barclays, BNP) and the main US banks will as well (GS, MS, C, JPM). Wells Fargo is not an investment bank and BOA was largely a fringe player in investment banking as well.
You do have many valid points, but lately you come off as so desperate to prove your "thesis" that you seem to be losing objectivity. I think most people will already agree RE in New York is due for a rather large adjustment, myself included.
"that you seem to be losing objectivity"
stevejhx losing objectivity? How can you lose something you never had?
looks like they are starting...
http://dealbreaker.com/2008/10/layoffs-watch-08-bloodbath-at.php
We got the rufus asshole and his Chicago superiority, not to mention his racism
and now we got stevejhx and his Charlotte superiority, and I think most of us know the rest of his problems
stevejhx
1 day ago
ignore this person
report abuse A lot of what doesn't get eliminated will be moved to Charlotte, where it's cheaper.
The days of Wall Street dominance are over: Wells Fargo is based in San Francisco, Bank of America in Charlotte. Only JPMorgan is based here, and with the purchase of Washington Mutual they might move a lot of their retail operations to Seattle.
I don't count C.
I think we have it backward... who said NYC would be worse off with less bankers....?