Sovereign Bancorp to layoff 1000 jobs

Sovereign Bank, a subsidiary of Philadelphia-based Sovereign Bancorp Inc intends to cut 1,000 jobs, to reduce costs.

The reductions, which have already begun and will continue in 2009, represent about 8.3 percent of the lender's 12,000 employees.

It may be noted that Sovereign is being taken over by Banco Santander SA of Spain for an estimated $1.9 billion in stock.

The Spanish bank already is Sovereign's largest shareholder with a 24 percent stake. The deal is expected to close in the first quarter of 2009.

Sovereign shares were up 4 cents at $2.88 on Friday on the New York Stock Exchange. The bank's shares have fallen 75 percent this year.