Merged BNY, Mellon May Reduce Workforce by 10 Percent

Bank of New York and Mellon Financial don't foresee much change in their combined workforces as they prepare for their merger, though over three years they may reduce staff size by nearly 10 percent.

Bank of New York and Mellon Financial Corporation have entered into a definitive agreement to

merge, creating the world's largest securities and asset management firm. The new company will be called The Bank of New York Mellon Corporation. It will have $16.6 trillion in assets under custody and $8 trillion under trusteeship. With more than $1.1 trillion under management, it will be among the world's top 10 asset managers.

The companies expect their combined employee base of 40,000 to be reduced by approximately 3,900 over three years, once the transaction has been completed. They will reduce headcount through normal attrition "wherever possible," and say they will provide "extensive support" to employees impacted by the merger.

Pittsburgh - now Mellon's home - will be headquarters for several business divisions, and will be a center for technology, operations and administration, according to Mellon Chairman and Chief Executive Robert P. Kelly.