The company will record a charge of five cents to seven cents per share, or $20 to $25 million, in the fourth quarter in conjunction with the severance and benefits related to cutting the jobs. The company says the cost-cutting and job-cutting measures are hoped to increase profits to allow for continued international growth. Officials from the firm did not return a call for comment.
"The macroeconomic environment has been extraordinarily difficult and has impacted all segments of the global economy," says Frederick H. Waddell, president and CEO of the company. "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."
The company says they do not foresee any impact to client services as a result of employee reductions, but rather the move will streamline operations. Northern Trust stocks closed Monday at $45.22 a share.
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