Bank One says job cuts may total 5,100
WASHINGTON, March 17 (Reuters) - Bank One Corp. (NYSE: ONE), the fourth largest U.S. bank which had warned of
job cuts, specified on Friday that it may eliminate 5,100 jobs in units that would include credit card and consumer lending.
The Chicago-based company, which has issued several profit warnings, disclosed the number of staff reductions in its annual
report filed with the Securities and Exchange Commission.
"The net reduction in full-time equivalent positions is anticipated to approximate 5,100, with an estimated severance cost of
$143 million," Bank One said in the regulatory document.
The majority of the reductions had already been communicated to employees or were occurring through normal attrition, it
said in a separate statement.
About 1,000 of them had been eliminated in the credit card division, including through attrition, said the company, whose First
USA credit card operation became troubled last year due to rising interest rates and customers defecting to rivals after it
imposed more late fees.
"It has been our experience that many affected employees find new jobs in other areas of the company," the statement said.
"Also, the company continues to create jobs as operations grow in other parts of the bank."
It cited, as an example, a new remittance processing center in Baltimore, Md., that it said will create 500 jobs.
Bank One shares were down 3/16 to 27-1/2 in late afternoon trading on the New York Stock Exchange. |
