US banking group Northern Trust has said it is to cut around 450 jobs, beginning at the start of 2009.

In eliminating the positions, which amount to just under 4 per cent of its workforce, along with other cost cutting moves, Northern Trust expects to generate approximately $50 million to $60 million in annualised pre-tax savings.

The job losses will result in a pre-tax charge in the fourth quarter of 2008 of approximately $20 million to $25 million for associated severance and benefit payments. The bank has not yet made it clear the extent to which job losses will relate to its extensive private client business.

Northern Trust said that the reduction is intended to streamline its operations and leverage more efficient operating centers and strategically reposition low-growth activities.

"Our decisions, while difficult, will further enhance Northern Trust's position amid challenging conditions, while maintaining our focus on clients and those activities in which we have significant competitive advantage and continue to see opportunities for growth," said Frederick Waddell, chief executive, Northern Trust Corporation.

Northern Trust could not offer any further information on the sectors or locations from which the job cuts will be made; these decisions are still being finalised, a spokesperson told WealthBriefing.

Chicago-based Northern Trust has a network of 85 offices in 18 US states, along with international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region.

As of September 30, 2008, Northern Trust had assets under custody of $3.5trillion, and assets under investment management of $652.4 billion.