Northern Trust confirmed Thursday that it is laying off hundreds of employees and will take a charge of $55 million during the quarter "in connection with a reduction in force."
"This charge relates to actions we are taking to eliminate approximately 500 positions globally representing about 2.5% of our staff," Northern Trust Chief Financial Officer Jason J. Tyler said during an earnings call. "This is in line with our ongoing efforts around productivity and efficiency and expected to result in annual run rate savings of approximately $50 million on a net basis."
In a Jan. 7 email sent to employees, CEO Michael O'Grady called the decision to cut jobs "extremely difficult." He added, however, "To create value now, and in the future, we must adapt and improve."
For the quarter, Northern Trust reported $1.41 trillion in assets under management, up 7% from the previous quarter and up 14% from the fourth quarter of 2019.
Corporate and institutional assets totaled $1.06 trillion in the fourth quarter, up 6% from the previous quarter and 15% higher from the year-earlier period.
Assets under custody reached $14.53 trillion as of Dec. 31, up 11% from the previous quarter and 21% higher than the year earlier.