Northern Trust Corp. disclosed laying off 500 employees in all areas of the company and another severance package during an earnings call Wednesday as part of the bank's continuing efforts to "operationalize efficiency."
Northern Trust's current head count is 23,500 employees.
Northern Trust earmarked $38.7 million of pre-tax severance-related charges (after-tax $29.2 million), according to the firm's earnings release Wednesday.
In December, the bank also initiated a severance charge of $32 million, saying up to 400 employees in all divisions would be impacted.
A Northern Trust spokesman said in an email that "the majority of these actions were taken by the end of the second quarter."
The earlier-announced severance charge, combined with the severance charge in Wednesday's earnings release, reflects a reduction of about 900 roles, the spokesman said.
"These (actions) reflect roles in all areas of the company and all locations," the spokesman said, adding that "we continue to selectively add staff. We're prioritizing projects and bring in resources where necessary to minimize risk, support regulatory requirements and accelerate new business growth."
The bank's investment management unit — Northern Trust Asset Management — managed $1.37 trillion in the quarter ended June 30.
As of that date, assets under management were up 2.7% compared to the prior quarter and up 4.8% in the year ended June 30, according to the bank's earnings data.
At the end of the first quarter of 2023, Northern Trust Asset Management managed $1.33 trillion, up 6.5% over the prior quarter and down 10.6% year over year ended March 31.
