Analysts who attended a dinner on Thursday night with First Union (FTU) officials said the cutbacks would be in non-revenue producing areas and ongoing branch closings.

As many as 7,150 positions could be cut. First Union currently employs 71,490 people in United States. A bank spokeswoman said First Union would not have as specific number until mid-March.

The Charlotte, N.C.-based First Union indicated at the meeting that it would take a charge of about $150 million in the first quarter, which would be partially offset by one-time gains from the sale of a CoreStates Unit. First Union acquired CoreStates in April last year.

"Here we are in mid-February," said Michael Ancell, a banking analyst with Edward Jones, speaking on CNN's "In Play", "and it seems like First Union is still trying to figure out how its going to make its $4 earnings per share estimate number this year."

Ancell said "the company needs to get its arms around its business and decide exactly how its going to hit its earnings projections and then deliver on its promises."

Frank Barkocy, an analyst with Josephthal & Co., said the bank told analysts that it had no immediate plans to make an acquisition on the banking side.

"They said the odds of First Union doing a merger of equals in the next 24 months is 10 per cent or less," Barkocy said, "and in the third year it is probably about 33 per cent. They suggested there are only a limited number of players out there that would fit with them and many of them are currently engaged in digesting their own acquisitions."