BofA to Cut 7,500 Jobs After Countrywide Deal

Associated Press (06/27/08); Augstums, Ieva M.
Bank of America will pink-slip approximately 7,500 employees as a result of its acquisition of Countrywide Financial Corp., slated to be finalized on July 1. The job cuts will take place over the next couple of years and total roughly 12.5 percent of the combined entity's mortgage, home equity and insurance businesses. The all-stock deal is worth an estimated $2.8 billion, down from an earlier valuation of $4 billion, as Bank of America's stock price has continued to decline amid a worsening housing slump and lingering credit crunch. The acquisition will give Bank of America control of between 20 percent and 25 percent of the country's mortgage market.