Inside views on the jobs market
Nerves are likely frayed at newly-acquired Merrill Lynch after analyst Richard Bove wrote a daunting note to clients warning of Bank of America’s “slash and burn” post-acquisition style, Bloomberg reports. A BofA spokesperson is mum on the size of the cuts, but Merrill CEO John Thain estimated in an earlier TV interview that cuts would be in the thousands. CNBC reported that about 500 sales and trading jobs across fixed-income and equity divisions have already been cut.
Meanwhile, some 4,000 National City employees are expected to get the axe as the Cleveland-based lender looks to shave costs over the next three years.
But it’s not bad news for everyone. Merrill’s head of strategy Peter Kraus is set to walk away with as much as $25 million, according to media reports. And three other senior Merrill executives — president and COO Greg Fleming, global sales and trading head Tom Montag, and global wealth management president Bob McCann — will take on new positions at Bank Of America.