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Frederick H. Waddell

Northern Trust launches $250 million cost-cutting initiative

Northern Trust launches $250 million cost-cutting initiative

Chicago-based Northern Trust has announced a plan to cut $250 million in costs by 2020, but bank officials won’t say if the move will result in layoffs.

On Wednesday, Northern executives unveiled “Value for Spend,” a companywide expense management program aimed at reducing costs by reviewing the company’s structure.

Chief Financial Officer Biff Bowman said the bank may outsource services and consider new tools like artificial intelligence and robotics to increase efficiency and productivity.

“We are committed to building on our growth momentum to achieve a better balance between revenue expansion and the expense needed to support that expansion,” Bowman told analysts...