STRATEGIC PARTNERS
January 10, 2002
MINNEAPOLIS -- U.S. Bancorp said it is eliminating about 2,500 jobs as a result of its merger with Firstar Corp., but said some people would be transferred to other jobs within the company.
The total number of job cuts was 750 more than the 1,750 the companies estimated in a proxy statement sent to shareholders in January before the merger was completed.
Firstar acquired U.S. Bancorp for $22.5 billion in stock, but took the Bancorp name and moved its headquarters from Milwaukee to Minneapolis.
The companies had about 50,000 employees when the deal closed, said spokeswoman Wendy Raway.
The new figure on job cuts was disclosed in a quarterly filing Tuesday with the U.S. Securities and Exchange Commission.
"It's where there are duplicative positions," Raway said. When possible, she said, displaced employees are moved to other jobs within the company. Others are given severance pay and help in finding new jobs, she said.
The company said in April that total pretax charges related to the Firstar merger are expected to reach $970 million, an increase of $170 million from the company's estimate last October.
