State Street Corp. to Cut 6% of Workforce
December 8, 2008
State Street Corp. will lay off 6% of its workforce, or 1,800 people, in the first quarter. Initially, the layoffs will cost the company as much as $350 million, or 51 cents to 55 cents a share, but that will then revert to $400 million in annual savings.
Most of the people being let go are middle and senior managers in North America, whose positions will be consolidated.
State Street Chairman and CEO Ronald Logue said the firm is making the cuts to continue delivering strong results; in the third quarter, State Street's earnings rose 33% to $477 million, or $1.09 a share. For the full year, State Street is projecting earnings to rise between 10% and 15%. Next year, Logue said, earnings will be on the low end of that scale.
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