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State Street says 3,100 take voluntary redundancy

US – State Street Corp. says that 3,100 of its employees have opted to take voluntary redundancy – more than it expected. A spokesman said the cuts would all be in the US.

The Boston-based bank said in a statement that because the response to its “voluntary employee separation program” was stronger than expected, it would add 800-1,000 employees to its US workforce in the next year.

It would post a pre-tax restructuring charge of around 296 million dollars (261 million euros) relating to severance benefits which would be mostly recorded in the second quarter. The job cuts are part of a move to save around 125 million dollars.

"We have significantly reduced our cost structure while retaining key talent and ensuring continuity in our high-quality client service through staggered departures and selective ongoing hires,” said David Spina, chairman and chief executive.

The bank said that - excluding the restructuring charge – it expects to report improved operating results when it reports second-quarter earnings on July 15. The improvement reflects cost cutting, new business and the integration of the Global Securities Services business it bought from Deutsche Bank.

"I am very pleased with the positive response we are receiving from GSS clients. Our acceptance in European markets is illustrated by the new business we are winning from Depotbank clients such as Deutscher Ring Versicherungen, one of Germany's leading insurance companies," Spina said.

State Street’s asset management arm State Street Global Advisors manages around 52 billion euros in European pension fund assets.

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