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Wachovia Withdrawal

Banker to cut up to 4000 more jobs by end of 2007

Published

19 years ago

January 20, 2005

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Wachovia Corp. (Charlotte, N.C.), the nation’s fourth-largest banking retailer, said it plans to cut up to 4000 more jobs by the end of 2007 as part of a plan to reduce expenses by up to $1 billion.

The bank said it is also considering sending technology jobs overseas.

The job cuts would be company-wide, with about 20 percent expected to come through attrition. This will be the second major layoff the bank has undertaken in the past year. It had already announced plans to eliminate 4300 jobs as part of its $14.3 billion acquisition of SouthTrust Corp. in November 2004.

Chairman and ceo Ken Thompson said it is “exactly the right time” to undertake the initiative despite entering 2005 “with our earnings momentum strong and with our outlook so positive.

“This isn’t a one-time, cost-cutting exercise,” Thompson said.

A Wachovia spokesperson said the bank plans to reinvest up to 50 percent of the savings from the initiative into high-growth areas, such as wealth management and retail brokerages.

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