Sovereign Bank announced today that its management team has completed a comprehensive examination of the company's 2009 budget. 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.
"Over the last several months, we conducted a thorough review of our projected 2009 budget in an effort to reduce our costs and become a more efficient bank," said Kirk Walters, Sovereign Bancorp CFO and acting CEO. "The analysis was part of a broader effort to focus on our fundamental lines of business and to set our long-term strategic direction."
The reductions will take place across the company beginning in the fourth quarter of 2008 and continuing throughout 2009.
"The decision to reduce our workforce was a very difficult one, especially during the holiday season," said Walters. "There is never a good time to reduce staff, but this step is necessary, particularly during this economic environment. We are working to make the transition from the bank as smooth as possible for all affected team members."
About Sovereign
Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), is the parent company of Sovereign Bank, a financial institution with principal markets in the Northeastern United States. Sovereign Bank has 750 community banking offices, over 2,300 ATMs and approximately 12,000 team members. Sovereign offers a broad array of financial services and products including retail banking, business and corporate banking, cash management, capital markets, wealth management and insurance. For more information on Sovereign Bank, call 1-877-SOV-BANK.
Media Contacts Andrew Gully
Office: 617-757-5513
agully@sovereignbank.comEllen Molle
Office: 617-757-5573
emolle@sovereignbank.com
Equal Housing Lender - Member FDIC
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