Sovereign Bancorp Inc. announced that it will cut about 1,000 jobs to reduce costs ahead of its sale to Banco Santander SA.

The cuts, roughly 10% of Sovereign's work force, follows a review of the company's operations and will take place through 2009.

Sovereign accepted Banco Santander's offer to purchase the 76% of the company it doesn't already own in October.

The offer, which initially valued that outstanding stake at $1.9 billion, has fallen by more than a third as financial stocks have declined the past two months.

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