A Northern Trust spokesperson has revealed details to Global Custodian of the firms plan to cut 700 jobs in Europe and the United States as part of a measure to reduce costs by $250 million by the end of 2013.
Last July, the firm said it would lay off approximately 270 staff in the United Kingdom and Ireland as a result of job overlap due to its acquisition of Bank of Ireland Securities Services.
The spokesperson now says approximately half of the 700 total job cuts will take place in Europe. Most of the employees at risk of losing their jobs were notified that their positions were in jeopardy in the third and fourth quarters of last year, according to the spokesperson.
The remaining 350 or so positions to be eliminated in the United States are a new revelation. The spokesperson says the eliminated jobs are expected to be distributed business unit by business unit, region by region. The firm has launched a formal internal process in order to determine which jobs will be shed. Most employees who are being laid off will be notified in the first quarter this year, while remaining staff will be notified in the coming 12 to 18 months.
In addition to laying off current employees, the reduction in force will also stem from attrition and by closing open posts, the firm says.
Northern Trust says its total workforce numbered 14,053 staff as of December 31, an increase of 10% from the year prior. The layoffs total about 5% of its total workforce.
Approximately 6,600 of the firms staff are located in Illinois, where the company is headquartered.
Frederick H. Waddell, chairman and CEO of Northern Trust, addressed the cost-saving measures in the firms fourth quarter 2011 report, issued last week, but did not reveal details of the job cuts.
We have been actively analyzing various aspects of our businesses and technology to identify opportunities to deliver more value to our clients and shareholders, he said in the report. Through these efforts we have developed and begun to implement initiatives that we expect will sustainably improve productivity and profitability. These profit improvement initiatives are expected to benefit annual pre-tax income by approximately $250 million by the end of 2013. The restructuring charges recorded this quarter and earlier this year include the planned elimination of approximately 700 positions, and additional positions will be eliminated through attrition. However, we will continue to invest and hire to support the growth of our business.
(CG)