Bank merger to cut up to 2,000 UK jobs

As many as 2,000 jobs in the City of London are to be axed after the merger of investment banking giants Merrill Lynch and Bank of America, it was reported today.

The banks are preparing to cut 30% of their combined London-based staff over the next few months, although job losses are already being seen in some departments, according to The Times.

UK job cuts reportedly come as part of a plan announced by Bank of America in December to reduce the combined global workforce by around 30,000 to 35,000 over the next three years.

Merrill Lynch employs 6,000 staff in London and Bank of America has around 2,000 UK employees.

Bank of America, which completed its rescue takeover of Merrill Lynch on January 1, is hoping to save around $7bn (€5.25bn) by 2012.

The takeover was unveiled last September amid a dramatic weekend on Wall Street, when the bankruptcy of Lehman Brothers was also announced, causing stock markets globally to plunge.

It was understood that the deal came as fears grew that Merrill could become the next bank to lose the confidence of investors.