Bank Of America To Lay Off 2,500

Bank of America (BAC) will lay off about 2,500 employees in Illinois over the next two years as part of its planned $21 billion purchase of Chicago's LaSalle Bank, a spokesman said Tuesday.

Employees found out Monday about the layoffs, which will begin in first quarter of 2008, although bank locations and lines of business have not been identified, said Scott Silvestri, spokesman for Charlotte-based Bank of America. After the layoffs, Bank of America will have about 8,000 Illinois employees, he said.

"These layoffs, while painful, are a necessary first step toward meeting our long-term goals," Silvestri said.

Bank of America earlier this month received approval from the Federal Reserve to complete its acquisition of LaSalle Bank. The decision was the final regulatory hurdle for the transaction, which is expected to close in early October.

Read more on AP Via USA Today