Some staff at Bank of America Merrill Lynch’s non-US wealth business could lose their jobs once Julius Baer’s purchase of this unit is complete although any changes depend on exactly how many assets come over, the Swiss bank says.
On the day that Zurich-listed Julius Baer announced the deal, which will boost its assets under management by up to 40 per cent to SFr251 billion (around $256 billion), the bank sought to elaborate on some of the impact.
With any such merger and acquisition deals, speculation focuses on whether employees affected by functional overlaps will be shed, either voluntarily or through redundancy. So far, Julius Baer is providing no hard numbers. The deal, if fully approved by regulators and shareholders, will be complete by 2015 – over two years away.
But a spokesperson for Julius Baer told this publication that changes could involve job reductions. Also, the Merrill Lynch tag will disappear as the business is drawn into the Julius Baer organization.
A reduction in some jobs is “very likely as there are overlaps of functions and we want to increase profitability of the business,” the spokesperson said. “These are not yet targets or estimates,” the spokesperson said.
“Much depends on the amounts of assets transferred to us, as this affects the numbers of people,” he said.