Plus   Neg

State Street To Cut About 1,500 Jobs

State Street Corp. (STT) said that the new cost-cutting program will reduce its workforce by 6%, or about 1,500 employees and will cut number of senior managers by 15%.

Ronald O'Hanley, President and Chief Executive Officer, said ",... Amidst challenging market and industry headwinds, we have launched a new expense program designed to reduce costs. As part of that program, we recorded a $223 million pre-tax repositioning charge, the benefits of which we expect to fully realize within 12-15 months."

State Street said it expects to realize $350 million in underlying expense savings in 2019, through increased resource discipline, process re-engineering and automation. As part of the expense program's initiation, the fourth-quarter of 2018 expenses included a repositioning charge of $223 million, including $198 million of compensation and employee benefits and $25 million of occupancy costs.

The expense program includes reduction of senior managers by 15% through management delayering and aligning global organizations; introduction of a more rigorous performance management system; increased vendor management in subcustody and professional services.

The company announced workforce reduction of 6%, or approximately 1,500 employees, in high cost locations as the Company realizes benefits of automation and standardized global processes; ationalization and streamlining of 3 operational hubs and 2 joint ventures; retirement of legacy applications and accelerated move to common platforms; limiting regional and client operating differences and reducing the number of manual, bespoke activities.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Royal Bank of Canada (RY, RY.TO) reported that its first-quarter net income to shareholders increased to C$3.10 billion from C$2.93 billion, a year ago. Earnings per share was C$2.15 compared to C$2.01. Adjusted EPS was C$2.19 compared to C$2.05. On average, 12 analysts polled by Thomson Reuters expected... Google added bitcoin's 'B' symbol to its Keyboard on iOS devices, indicating the leading cryptocurrency's growing acceptance in the mainstream industry. The feature, however, is not added to Android keyboards. The addition of the bitcoin currency key reflects Google users' growing interest in bitcoin. According to Google Trends, 'What is Bitcoin?' was the most popular search question in 2018. Shares of Deutsche Telekom AG were losing around 2 percent in German trading after the telecom giant reported Thursday a net loss in its fourth quarter, compared to prior year's profit, despite increased revenues. Looking ahead, the company said its 2019 forecast shows undiminished growth momentum.
Follow RTT