First Chicago Corp.'s announcement Wednesday that it would lay off about 1,000 employees should not have a significant impact on the bank's municipal securities business, John Gilchrist, chairman of First Chicago Capital Markets, said yesterday.
Mr. Gilchrist said the municipal securities department, which includes public finance, underwriting, trading and distribution, would not experience any "major layoff of personnel" under the new cost-cutting strategy for First Chicago's global corporate bank.
"Since 1986 we've taken very aggressive action to reduce the size of the department," he stated. "Therefore there is not a great deal of further reduction necessary as this time."
Mr. Gilchrist pointed out that the department currently has 60 employees, compared to about 71 five years ago. He added that so far in 1991, the municipal department has had a record year in volume of activity and profitability. According to Securities Data/Bond Buyer Co., First Chicago ranked 12th as senior manager on long-term bond issues for the first six months of this year, compared to ranking 20th in all of 1990.
However, Mr. Gilchrist said the department's personnel levels would be evaluated and that some layoffs could be possible.
In a statement released Wednesday, the bank said it plans to lower its annual cost base by $100 million and would implement cost-cutting measures, such as the work force reduction of about 1,000 of its approximately 17,500 employees, by the end of the year.