Positive impact from Regions-AmSouth deal anticipated.
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The proposed merger of Regions Financial Corp. and AmSouth Bancorporation, expected to be approved and finalized later this year, will probably result in layoffs at the some of the bank branches in Mississippi, but positive impacts are also expected in the state. The merger could cost 10% to 15% of the 37,000 jobs at the two institutions, cuts that will help the company in a goal to reduce costs by $400 million by 2008. Many of the job cuts are expected to be in Alabama, where the two banks have the most overlap. It is too early in the process to know how many jobs might be lost in Mississippi, said Sonya L. Smith, vice president and manager of national media relations and executive communications for Regions. “We do have more overlap markets in Alabama,” Smith said. “But at this time, we are still waiting to hear from the Department of Justice regarding divestitures. As in any transaction of this kind, there is the unfortunate reality that some associates/employees from both companies… |