State Street Corp.’s new cost-cutting program will reduce its workforce by 6 percent, or about 1,500 employees, and will cut number of senior managers by 15 percent in in high-cost locations, according to the firm.
The company sees better benefits of automation and standardized global processes; rationalization and streamlining of three operational hubs and two joint ventures; retirement of legacy applications and accelerated move to common platforms; limiting regional and client operating differences; and reducing the number of manual, bespoke activities.
State Street said it expects to realize $350 million in underlying expense savings in 2019, through increased resource discipline, process re-engineering and automation. As part of the expense program's initiation, the fourth-quarter of 2018 expenses included a repositioning charge of $223 million, including $198 million of compensation and employee benefits and $25 million of occupancy costs.
