State Street to cut up to 1,800 more jobs

US – State Street Corp. says it will cut a further 1,800 jobs in addition to the 1,000 jobs it has already announced, in a bid to trim 125 million dollars in costs this year.

The company’s State Street Global Advisors arm is the ninth largest manager of European pension fund assets, with 59.8 billion dollars of such assets under management.

“Expense reductions, which are in addition to those previously announced in connection with State Street’s acquisition of Deutsche Bank’s GSS businesses, will be phased in during the second quarter,” State Street said in a statement released after the market closed last night.

The job cuts would come from “all levels of the organisation”. Most of the cuts would come through “voluntary early retirement and enhanced severance programs”. It currently has more than 22,000 staff worldwide, including 3,000 who were part of the 1.5 billion dollar acquisition of Deutsche Bank’s GSS custody arm.

The cuts would be concentrated in the US, a spokeswoman said.

“We are positioning State Street for improved profitability,” said chairman and chief executive David Spina.

The job cuts would lead to a pre-tax charge of between 125-175 million dollars and would decrease second-quarter earnings per share by around 0.25-0.35 dollars per share.

The Boston-based firm has 6.2 trillion dollars in assets under custody and 763 billion dollars in assets under management.

Its shares have shed 40.7% of their value from their 52-week high of 55.68 dollars. State Street releases its first-quarter earnings on April 15.

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