Sovereign Bank announces job cuts

Sovereign Bank said it plans to cut 1,000 of its 12,000 jobs through next year, including 131 of its 3,400 positions in Massachusetts.

Spain’s Banco Santander had suggested it would seek cost reductions following its purchase this fall of Sovereign’s parent in Pennsylvania Sovereign Bancorp. Sovereign is the third-largest bank in Massachusetts.

Sovereign’s cuts are the latest by a major bank in the face of the declining economy. Sovereign’s acting chief executive Kirk Walters said the job cuts follow an examination of its 2009 budget.

“The decision to reduce our workforce was a very difficult one, especially during the holiday season,” Walters said in a statement. “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.”

Sovereign is the latest financial-services company, either based here or with a large Massachusetts presence, to announce cut backs. Fidelity Investments, State Street Corp., and Bank of America Corp. are among such firms that have announced large cuts.

An October story in the Globe noted a forecast that projected that the collapsing stock market and weakening economy could cost the Massachusetts financial services industry 7,200 jobs, or 4 percent of its work force, through the end of 2009. To read that story, please click here.
(By Ross Kerber, Globe staff)