State Street Plans to Lay off Thousands and Thousands of People by 2020
State Street Corp. plans to lay off up to 7,000 employees by 2020, as the Boston-based financial firm tries to kickstart some growth.
Though State Street previously declined to share how many jobs it planned to shed in the long run, a transcript of a February 24 investors conference, first reported by the Boston Business Journal, reveals that number could be far higher than expected with the launch of its new technology program.
“We believe that we will reduce our staff across the globe 6,000 to 7,000 people over the five-year process due to this technology,” COO Michael Rogers said, according to the transcript. “Now most of these people will be redeployed into new business or are not replaced due to turnover, but that’s a big savings for us across the world.”
State Street, which employs 32,000 people worldwide, announced more than 2,200 layoffs between 2010 and 2011.
“We will continue to evaluate the needs of the organization to advance our long-term strategic priorities and continually look for ways to better align the organization,” spokesperson Anne McNally said in a statement. “But we will also continue to hire in key areas of the business that are growing, such as data and analytics, or in areas where we need to add expertise.”
State Street announced Wednesday it has finalized its acquisition of General Electric’s asset management firm for up to $485 million, as the Fort Point-bound company seeks to return to its industrial roots. As a result, State Street will take on $100 billion in assets under management, the BBJ reports.