Sovereign Bancorp Inc (SOV.N), a Northeast U.S. bank, which is set to be bought out by its’ largest shareholder Santander (SAN.MC) next year, confirmed 1,000 jobs will be cut to trim costs.

Just one of the many financial institutions that are announcing job cuts amidst the worst credit crisis since the Great Depression, Kirk Walters, chief financial officer and acting chief executive, says a review of Sovereign’s projected 2009 budget is responsible for the job cuts.

So far, there have been 250,000 job cuts this year announced this year by financial institutions, including Bank of America Corp (BAC.N), who last week said it plans to eliminate 30,000 to 35,000 jobs over three years, in preparation for business activity slowing down, as well as, its purchase of Merrill Lynch & Co Inc (MER.N).

Facing credit losses due to sub-prime crisis, Sovereign has posted a loss of $1.48 per share for the third quarter.