State Street is set to cut 1,500 jobs as it continues to reposition its business.
Speaking at Goldman Sachs US Financial Services Conference on 6 December, Eric Aboaf, vice chairman and chief financial officer at State Street, said the cuts would make up some of the $175-$200m “repositioning charge” expected in its Q4 results.
In a statement, State Street said the move was part of its “multi-year transformation journey to drive increased productivity and create efficiencies”.
“We will be taking a repositioning charge of approximately $175-200m as part of our 4Q 2023 earnings, which includes an expense primarily related to a reduction in force of approximately 1,500 positions.
“While we have added employees in distinct areas and business functions, we must now position ourselves for long-term success and take difficult but necessary steps to further streamline our organisation.”
It said it will we redeploying roles internally in order to limit the impact of the reductions.
“We will also reinvest in growing areas of the business or where there are opportunities to further expand our market share or product offerings, such as our Alpha platform, building out our private markets capabilities and investing in our core custody capabilities.”
State Street has approximately $3.7trn assets under management. At the end of 2022, it had over 42,000 employees globally.