Northern Trust Corporation takes some strategic actions to better position the company for improved profitability and continued growth during financial turmoil.
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, says Frederick H. Waddell, chief executive officer, Northern Trust Corporation. 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.”
L.D.