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

Quick Facts

Editors Pick
McDonald's Corp. has announced the return of its popular Shamrock Shake milkshake for a limited time at participating U.S. restaurants nationwide. The minty green milkshake is made with McDonald's vanilla soft serve blended with Shamrock Shake syrup and topped with whipped topping. It first debuted on the McDonald's menu in 1970 and has been a seasonal tradition for nearly 50 years. Asia-focused lender HSBC, through its blockchain-powered platform, has reduced the cost of settling foreign exchange trades by 25 percent, Reuters reported quoting a bank executive overseeing the project. Mark Williamson, chief operating officer of FX cash trading and risk management, told that the bank processes between 3,500 and 5,000 trades a day on its "FX Everywhere" system. PepsiCo, Inc. (PEP) reported fourth-quarter core EPS of $1.49 compared to $1.31, prior year. Excluding the impact of foreign exchange translation, core constant currency EPS increased 17 percent year-over-year. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per...
Follow RTT