Northern Trust to cut 450 jobs

Northern Trust Corp. said Monday it is cutting about 4 percent of its staff to reduce costs and streamline operations amid the weakening economy.

The Chicago-based custody bank and asset manager will cut about 450 jobs. As of Sept. 30, it had about 12,100 employees.

Northern Trust will take a charge of about $20 million to $25 million, or 5 cents to 7 cents a share, during the fourth quarter to cover severance and benefit costs associated with the jobs cuts.

The job cuts are expected to eventually generate $50 million to $60 million in annualized savings for the financial services firm.