First Union May Cut Many More Jobs Than Expected

A sweeping restructuring of First Union Corp. could result in hundreds more layoffs than the banking giant previously estimated.

As many as 5,291 employees could lose their jobs, according to documents filed Friday with the Securities and Exchange Commission. When the restructuring was announced in June, the bank said 3,500 people would be affected.

Bank spokeswoman Mary Eshet said the nation’s sixth-largest bank notified the more than 5,000 employees that the restructuring could affect their jobs.

“We have not let go of this many people but have accrued [money] to pay severance benefits for this many people,” Eshet said. “Some of that number will end up not being displaced.”

The bank expects to spend $135 million for severance pay, outplacement services and related benefits for the employees.

The restructuring has led First Union to shut down the Money Store, its Sacramento-based home equity loan subsidiary. Other units are being sold or scaled back.

As of April 30, First Union employed about 72,800 companywide and about 15,700 in Charlotte, its headquarters.

On Friday, First Union rose 31 cents to close at $29.25 on the New York Stock Exchange.