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Sovereign Bank to cut 1,000 jobs

Sovereign Bancorp, in the process of being taken over by Spain's Santander Santander, city (1990 pop. 194,221), capital of Cantabria prov., N Spain, in Cantabria, on the Bay of Biscay. It is a seaport, fishing center, and a popular resort. On the nearby peninsula of Magdalena is a former royal summer palace. , said Friday Friday: see Sabbath; week.

Friday

young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe]

See : Servant
 it would eliminate 1,000 jobs by the end of 2009 to cope with the global financial crisis.

"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's acting chief executive.

"The analysis was part of a broader effort to focus on our fundamental lines of business and to set our long-term Long-term

Three or more years. In the context of accounting, more than 1 year.


long-term

1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term.
 strategic direction."

The reductions will take place across the company beginning in the fourth quarter of 2008 and continuing throughout 2009 at Sovereign, which faced a meltdown meltdown

Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb
 in its share price earlier this year before Santander stepped in.

"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."

The Federal Reserve earlier this month approved the takeover by Santander, the eurozone's biggest bank by market capitalization Market Capitalization

A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap.
, of the Pennsylvania-based lender.

Sovereign has total assets of about 79 billion dollars and is the 22nd largest banking group in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. .

With Santander's control over Sovereign, it will now have combined total assets of about 120 billion dollars in the United States.
Copyright 2008 AFP Global Edition
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Author:AFP
Publication:AFP Global Edition
Date:Dec 19, 2008
Words:244
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