The news of a big banking merger is beginning to sink in.

Employees of First Security and Zions Banks are wondering what the merge of the two companies will mean to them, while industry analysts offer their own estimates of how many jobs are at risk.

News Specialist Pamela Davis reports from a local bank branch.

On this stretch of Foothill Boulevard, we have a Zions Bank and a First Security branch a few yards from each other.

Once competitors, they're now partners -- and obviously they don't need two branches so close together.

That's just one example of why this merger is raising concerns about job cuts.

Wall Street analysts are predicting the merger of First Security and Zions Bank could lead to as many as 2,000 job losses.

Zions Bank CEO Harris Simmons says, "There will be some job reductions."

While admitting there will be layoffs, bank representatives are downplaying the high numbers.

Brad Hardy, First Security Chief Financial Officer, says, "I think the number of 2,000 was an off-the-top-of-the head response to that."

Leaders of both First Security and Zions have already said most of the job reductions will be handled by attrition and hiring freezes.

Brad Hardy, First Security Chief Financial Officer, says, "I think when we say 'Trust us, stay calm, we'll do what's right for you,' I think over the years we've earned that respect."

Today, a few bank employees told us they're a little worried about their job security, but they support the merge.

Carol van der Beek, who works at First Security says, "Well, some of us are a little concerned, but I think it's for the better."

Beverly Crookston, also of First Security, says, "I had mixed emotions last night, but the more you think about it, I think it's going to be very good. And I don't think the two CEOs would do this unless they thought it was prosperous for Salt Lake."

Former State Banking Commissioner George Sutton says the merge will strengthen the banks against takeover attempts, and help them stay in Salt Lake.

"There have been a lot of studies about what happens to communities like Salt Lake when the banks that used to be headquartered here get gobbled up by somebody out of state, and they take the headquarters and move them away. You know, there's a lot that's lost."