State Street Corp. said it’s laying off 1,500 staff as part of a plan to reduce costs.
The layoffs equate to about 6 percent of the workforce in high-cost locations, the Boston-based bank said in an earnings statement Friday. Senior management is being reduced by 15 percent.
Ronald O’Hanley, who took over this month as chief executive officer of the money-management and custody-banking giant, is pushing to reduce expenses, automate more functions and simplify the organizational structure. Bloomberg reported last week that State Street began cutting 15 percent from its ranks of hundreds of senior managers, including executive vice presidents and senior VPs.
The new CEO has said the firm needs to reduce structural costs by 2 percent to 3 percent a year.
Investors responded warmly to news of the job cuts: State Street’s stock has rallied 13 percent this year, making it the second-best performer among 18 companies in S&P’s index of money managers and custody banks. The shares sank 35 percent in 2018 as rocky markets crimped third-quarter fee revenue and analysts questioned whether the purchase of a software maker was too costly.
This article provided by Bloomberg News.