MINNEAPOLIS - U.S. Bancorp's merger with Milwaukee-based Firstar Corp. will cost about 2,500 employees their jobs, about 42% more than estimated, a U.S. Bancorp spokeswoman said Wednesday.
The two banks originally thought 1,750 jobs would be cut after the merger closed in February. U.S. Bancorp outlined the cuts this week in a quarterly filing with the Securities and Exchange Commission.
According to the filing, U.S. Bancorp will record merger- and restructuring-related charges of $570.8 million in the first quarter. Of those, $63.8 million are employee-related costs, including severance and benefits for the 2,500 fired workers.
Under the severance package employees will be paid for two years, according to the filing. Those who were terminated through the merger worked at branches and in data processing and centralized corporate support.
U.S. Bancorp has $160 billion of assets and operates more than 2,000 branches.