BMO Financial Group today announced a restructuring charge of $135 million ($88 million after tax) that it will record in its first quarter earnings when they are released on March 1.

The charge relates to the elimination of approximately 1,000 jobs in primarily non-customer-facing areas of the company across all support functions and business groups. Of the charge, $117 million relates to severance-related costs and $18 million relates to non-employee-related costs.

The charge reflects BMO’s previously-stated intention to enhance customer service and focus on front-line sales and service improvements, and continuing and accelerating the pace of the company’s growth.

BMO says restructuring efforts announced today are the results of a comprehensive review of the efficiency and effectiveness of all support functions, business groups and processes that support sales and service.

The company noted that the benefits of the cost savings from this initiative are important to achieving the 2007 financial targets provided in its 2006 fourth quarter earnings release.

“BMO’s biggest competitive advantage is our people so it is always tough to take decisions that result in job eliminations,” said Tony Comper, BMO Financial Group’s president and CEO. “However, we owe it to our customers, our employees and our shareholders to have lean, efficient support functions, simplified processes, fewer layers and to eliminate duplication across our enterprise.”

BMO expects to continue implementing these initiatives throughout 2007 and beyond, with the majority of job reductions occurring in fiscal 2007.

Bill Downe, chief operating officer, commented, “When fully implemented, these changes will help our employees to deliver improved service to our customers and will provide us with a competitive and sustainable cost base. The savings will fund future growth and our front-line operations. In the past year, we have made investments in customer service, increased the number of sales professionals and pursued a lean, proactive center to support the company. These efforts will deliver improved benefits for our customers, and make it simpler for employees to deliver exceptional service and win business for our company.”

He added: “Consistent with our normal practices, job reductions will be handled equitably and fairly, and we will move quickly and decisively to achieve our goals.”