Northern Trust Corp. plans to cut 450 jobs next year. The company expects to record a pre-tax charge of up to $25 million due to the job cuts and other costs. It was not immediately clear how the cuts would impact the Chicago firm's investment management arm.
Northern Trust officials said the moves would yield $50 million to $60 million in annualized pre-tax savings.
Company Press Release
CHICAGO, December 15, 2008 —Northern Trust Corporation announced today that it is taking a number of actions to better position the company for improved profitability and continued global growth during these difficult economic conditions.
Northern Trust expects to record a pre-tax charge in the fourth quarter of 2008 of approximately $20 million to $25 million ($0.05 to $0.07 per share) associated with severance and benefits relating to the elimination of approximately 450 positions and other costs. These actions are expected to generate approximately $50 million to $60 million in annualized pre-tax savings.
Position eliminations will begin after the first of the year, using attrition whenever possible. These efforts will not impact client service and, in combination, are designed to streamline operations, leverage more efficient operating centers and strategically reposition low-growth activities.
"The macroeconomic environment has been extraordinarily difficult and has impacted all segments of the global economy. Our decisions, while difficult, will further enhance Northern Trust's position amid challenging conditions, while maintaining our focus on clients and those activities in which we have significant competitive advantage and continue to see opportunities for growth," said Frederick H. Waddell, Chief Executive Officer, Northern Trust Corporation.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has a growing network of 85 offices in 18 U.S. states and has international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2008, Northern Trust had assets under custody of US$3.5 trillion, and assets under investment management of US$652.4 billion. Northern Trust, founded in 1889, has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit http://www.northerntrust.com.
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