Financial services company Northern Trust is expected to announce more job cuts soon, according to industry analysts interviewed in a recent Reuters report. The company has already cut jobs this year in an attempt to lower costs.
Northern Trust, a Chicago-based provider of private banking, custody services and asset management, is attempting to cut its costs in a harsh enviornment for the financial services industry.
The firm recently sold its Atlanta retirement consulting business to Hewitt Associates, which resulted in 170 employees being laid off (see MME 5/5/03). In addition, more jobs have been eliminated due to outsourcing. Analysts expect more cuts to be in the works for the forthcoming months.
A recent statement from Northern Trust spokeswoman Sue Rageas confirmed that more positions outside of those already mentioned will be eliminated. However, Rageas declined to reveal which areas of the business these cuts will take place.
Analysts monitoring the industry stated they do not expect the Northern Trust cuts to be as extensive as those of Boston-based State Street Corp., which has cut about 1,000 jobs since January and announced 1,800 more cuts a few months ago.
Northern Trusts first quarter earnings are 25% lower than just a year ago.