plans to eliminate 450 jobs and will record a pretax charge in the fourth quarter of about $20 million to $25 million, or 5 cents to 7 cents a share, from severance and other benefits.
In a statement Monday, the bank said it expects pretax annualized savings of about $50 million to $60 million.
Northern Trust said it would cut jobs using attrition "whenever possible." The job cuts won't impact client services, the bank said.
"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 CEO Frederick H. Waddell.
At the end of October, Northern Trust said it would participate in the
program to invest $250 billion in capital from the Troubled Asset Relief Program, or TARP, into banks to encourage stalled lending. Northern Trust received a $1.5 billion infusion.