Julius Baer (PINK:JBAXY) plans to trim about 1,000 workers in the wake of its acquisition of Merrill Lynch’s international wealth management unit from Bank of America (NYSE:BAC).
The job losses will amount to between 15% and 18% of the private bank’s integrated international wealth management staff, with former Merrill Lynch employees getting the most pink slips, Reuters noted.
Bank officials indicated that the staff reductions would commence after the acquisition is finalized in the first quarter of next year.
Baer’s assets under management increased from 179 billion Swiss francs in June, to 197 billion Swiss francs in August. The bank projects that the Merrill Lynch deal won’t impact earnings per share in until 2015, when it will boost EPS by 15%.
Charges related to the acquisition pushed the bank into a loss of $30.4 million for the first half of the year. Excluding the Merrill Lynch purchase, it would have posted a profit.
Analysts noted that the Merrill Lynch unit had more investments in emerging markets and predicted increased volatility for Baer in the future.
Shares of Julius Baer fell about 1% in over-the-counter trading in New York on Tuesday morning, while Bank of America shares slipped fractionally.