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IT staff among thousands to lose jobs at Merrill Lynch

Warwick Ashford

IT staff will be among the thousands of Merril Lynch staff expected to lose their jobs when the company is taken over by Bank of America.

John Thain, Merril Lynch chief executive, confirmed that cuts would be in the corporate and services sectors, including IT, according to the Financial Times.

The Bank of America's acquisition of the investment and wealth management divisions of Merril Lynch is expected to be completed by the end of the year.

News of IT job losses at Merril Lynch follows recent predictions by New York financial supervisor William Thompson that up to 35,000 jobs could be lost in the city's financial services industry as a result of the economic downturn.

Many of those job losses are expected to be as a result of the collapse of Lehman Brothers, where analysts said IT staff will survive a major cull only if the liquidators make quick sales of individual business units.

In the UK, banks struggling with mergers and acquisitions face disruption to their IT strategies, including job losses.

Recent cost cutting has seen Bradford & Bingley close a mortgage processing centre with the loss of 300 IT jobs.

HSBC has slashed 1,100 jobs including IT in its investment banking division, and Barclays has cut 1,800 IT jobs.


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