State Street set to cut 1,500 jobs in repositioning effort

Last week (6 December), Eric Aboaf, the firm’s vice chair and CFO, spoke at the Goldman Sachs US Financial Services Conference on the direction of the firm, including aims to increase efficiency.

As part of these reforms, the CFO revealed the company will be taking a “repositioning charge” of between $175m to $200m as part of its fourth quarter 2023 earnings, primarily due to reducing its headcount by about 1,500 positions.

As of the end of the last year, the firm had 42,226 employees, meaning the cuts will represent approximately a 3.6% reduction in employees.

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A State Street spokesperson said: “While we have added employees in distinct areas and business functions, we must now position ourselves for long-term success and take difficult but necessary steps to further streamline our organisation.”

The firm added it will continue its focus on internal mobility and redeployment of roles to help match talent with the areas of critical need within the company, pointing to its Talent Marketplace initiative.

“We will also reinvest in growing areas of the business or where there are opportunities to further expand our market share or product offerings, such as our Alpha platform, building out our private markets capabilities and investing in our core custody capabilities,” the spokesperson added.