Sovereign Bank to cut 1,000 jobs

NEW YORK: Sovereign Bank, the banking unit of financial services provider Sovereign Bancorp, will slash 1,000 jobs as part of its efforts to bring down costs.

"Consistent with management's recommendations, the company approved initiatives to reduce costs and increase the bank's efficiency, including the reduction of approximately 1,000 positions," Sovereign Bank said in a statement on Friday.

The job cutting process would continue throughout 2009. Meanwhile, Sovereign is all set to be acquired by majority shareholder Spain-based Banco Santander by the first quarter of next year.

Santander, which currently owns 24.35 per cent of Sovereign, would acquire the rest of 75.65 per cent in the company for around USD 1.9 billion.

"The decision to reduce our workforce was a very difficult one, especially during the holiday season. There is never a good time to reduce staff, but this step is necessary, particularly during this economic environment," Sovereign Bancorp's CFO and acting CEO, Kirk Walters said.