Bank of America announced plans to cut 150 jobs at MBNA in Chester but create up to 1,000 new posts in a global technology and operations centre.
Another 100 jobs will be lost from the MBNA base in Ireland. In October, Bank of America Europe Card Services, which operates the MBNA brand, started a collective consultation process in Chester, where it has 3,200 staff. Around 400 job losses were forecast at the European credit card division.
The new technology centre will serve Bank of America's global banking and markets and wealth management businesses across Europe, the Middle East and Africa. The new centre is expected to be operational during 2013.
Cllr Mike Jones, leader of Cheshire West & Chester Council said: "This is wonderful news for Chester and provides the city with a new aspect to its technology portfolio – one which will help publicise the name of Chester across the world.
"We have already highlighted the very significant contribution that MBNA have made to this city and today's announcement means that this connection will be maintained in the future through its parent company, Bank of America."
Steven Broomhead, chairman of Chester Renaissance, said: "Whilst restructuring of the company's credit card business is sad but probably inevitable, news of the new regional technology centre is a very positive statement from bank of America about the importance it attaches to Chester as a future base."