The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Bank merger:
Jobs cut but profits expected

Jan 20, 2003

The New York M&T Bank Corp. which is taking over Allfirst, centered in Baltimore, has just announced 1,132 jobs will be cut this year, about half in the Baltimore area and the rest throughout Maryland, Delaware and Pennsylvania in their other operation centers.

M&T was willing to pay more than three billion dollars to take over Allfirst, buying it from its parent company Allied Irish. But it immediately announced that it needed to cut costs, like all the bosses do whenever one company buys another.

Allfirst was the bank from which a currency trader was fired after hiding millions of dollars in losses. Six co-workers and two executives also lost their jobs in that scandal. But now more than a thousand people who had no part in that scam will lose their jobs.

A M&T spokesman said, "This is a surgical procedure for us. It is something that a lot of thought and energy went into. It is carefully crafted to achieve long-term results."

And the long-term results are to protect the shareholders and the executives at the expense of the workers – with the job cuts carried out very "surgically"!