Thread regarding State Street Corp. layoffs

Another 750 layoffs - ignites.com

January 17, 2020
State Street expects to eliminate 750 jobs in so-called “high-cost” locations this year, executives said Friday. Last year, 3,400 positions were cut.
The headcount reductions are part of an overall plan to lower spending by about 1% for 2020, officials told analysts on the company’s fourth-quarter earnings call. In all, the firm reported $8.9 billion in expenses last year, down 1% from 2018.
“We see a path to continued and ongoing expense management, certainly through 2020,” CEO Ron O’Hanley said on the call. The company has a lot more to do to implement automation and process improvements across the organization, he said.
State Street is working to moderate its technology spending. However, the firm intends to continue investing in high-growth areas, such as its Charles River Development front-office technology business.
State Street took a $110 million “repositioning charge” in the fourth quarter associated with its 2020 plans. Of that, $98 million is related to severance and employee expenses, the earnings report shows. The remaining $12 million is tied to real estate.
Global headcount at the Boston-based custodian has dropped for four straight quarters. Before that, staff count rose for several years, despite rounds of layoffs. While the number of employees based in high-cost locations dropped by 3,400 during 2019, the firm apparently staffed up elsewhere. Firmwide headcount fell by 1,000, the company noted in its press release.
The 3,400 job cuts were more than double the firm’s initial projections. Last January, the company’s cost-cutting plan indicated that 1,500 such positions would be eliminated. And just a month ago, the firm said it was on track to cut 2,300 jobs in 2019.
The firm has eliminated positions in the United States, United Kingdom and other expensive locales, and shifted some of those roles to operating centers in China, India, Poland and elsewhere, executives have said.
Additional job cuts are expected to be a major force in driving down the firm’s gross expenses by up to 5% in 2020, CFO Eric Aboaf said on Friday’s call. But the company also expects to invest about 3% to 4% of that savings into Charles River, technology infrastructure, and bringing in new clients or business.

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Post ID: @OP+133Aav8D

19 replies (most recent on top)

You know absolutely nothing. State Street is not building anything. Someone else is putting up a tower at 1 Congress St and State Street has committed to moving there in 2023. By 2023 they will have easily hit there goal of 85/15 and consolidate all of the Boston jobs (not including Channel Center) and probably at least some Quincy jobs into one building. Then State Street's presence will basically be reduced to two buildings Channel Center and Congress St.

I am so happy to be out of State Street. I know many people that got canned or left because they knew what was coming and every single one of them is happier now. For those of you that want out go for it. The company has no respect for you and you owe them nothing.

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Post ID: @9kxf+133Aav8D

@Post ID: @7tpz+133Aav8D

Why you are such a rude person and I am not a Troll, I find it funny they spent 10's of millions building a new building in Boston.
While workers are still be thrown out the door , so Senior execs can continue to get their big fat raises

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Post ID: @8foj+133Aav8D

Agree, there are so many obvious trolls here. You can tell by the spurious claims they make they know nothing about the internal workings. One thread mentioned bonus percentages which were so off track I laughed out loud.

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Post ID: @7meg+133Aav8D

Okay, you must be a troll; for you inquired about a Boston waterfront location! If you worked at SSB in the last 2-4 years you would know a little more about what properties the employees work at. Go fish elsewhere, ha!

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Post ID: @7tpz+133Aav8D

@Post ID: @133Aav8D-5ckw

They do seem to have a lot of buildings in the North Quincy area.
I heard they have a state of the art building in Graton, do they have any staff there ?

lol finally didn't they just spend a ton of money to build a new building in the Waterfront area ?

Thanks

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Post ID: @6bdy+133Aav8D

rumors are that they will not be renewing the lease for the josiah quincy building which is up in 2020. building is already listed for lease and available as a sublease from current tenant now. if you're in that building, you should expect to either be let go or relocated (again).

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Post ID: @5ckw+133Aav8D

It's a legit article. Here is another article - same info

https://finance.yahoo.com/m/a42fd663-6e1a-3394-95bd-4cce6cd1b3ef/state-street-to-cut-750-more.html

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Post ID: @5hot+133Aav8D

I think this is is not a valid article.

There are no references to it anywhere on the web.

Tried a dozen sources, coming up with nothing.

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Post ID: @4mhr+133Aav8D

@133Aav8D-1ois I have a large network of State Street current and former employees and many of my network who worked in the fund administration area were displaced but still working for State Street. I would imagine that many of them will eventually leave and either transition into a new role in another company, same position in another company or move to another state where the opportunities are.
I was contacted by someone in New York city who wanted to consider me for a position. My point being that you will be considered and if you don't mind relocating you will be able to find employment in another corporation. Of course moving to New York City isn't for everyone but this would have been a dream job for me many years ago.

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Post ID: @2kzd+133Aav8D

Its amazing that the stock price goes up when costs decline as a result of hundreds of layoffs and cuts to IT. Don't they realize that a loss of clients will inevitably follow, after all the executives have paid their bonuses and sold their stock at inflated prices? Do they really think all these people were doing nothing, that the IT wasn't needed to retain clients? They are losing business and laying people off during the biggest USA boon in a generation. I sold my stock a long time ago. Missed this bump but also the inevitable fall.

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Post ID: @1ebb+133Aav8D

ignites.com is the source of this story, behind a paywall.

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Post ID: @1efq+133Aav8D

They are counting on CRD to bring in new revenue streams when a lot of their technology is legacy also. This is Beacon all over again. In addition, they expect their peers in financial firms to trust them with their information with their history of compliance violations and fines (like overcharging clients several times).

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Post ID: @1ctz+133Aav8D

Article was in the Boston Business Journal yesterday

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Post ID: @1rrr+133Aav8D

Can someone please post a link to the original source of this article? I cannot seem to find it anywhere.

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Post ID: @1kuc+133Aav8D

If you work in fund admin regardless of whether it is compliance, financial reporting, or tax you should already be looking for a new job period. The company never made big money on it they were merely providing those services to keep clients happy. The company is hedging that they can get rid of this work without upsetting clients to the point of losing the accounting and custodial work which is all they really care about now. The end game for fund admin is the company sending all the labor to India and outsourcing the high level review work. Trust me on this.

The only thing you have going for you is that India is so pathetic at their job that the company may have to stretch out their timeline to reach the desired result.

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Post ID: @1ois+133Aav8D

I got on the list last year.. I was ok with it, as after 14 years with the company I only saw more and more incompetent new hires from Citibank etc.. Outsourcing, failed IT projects in the tens of millions, headcount reductions yet players who contributed to failed projects survive and stay with the company. The morale just worse every year, no merits.. or even if you get some merit.. the health insurance premium increase results lower take home pay..

Looking back.. I feel sorry for my fellow coworkers who are still there. It is a shame that during record high stock market and booming economy SS still treats its employees very badly and outsources US jobs.

It was not easy but within 2 months I found a new job with much better company culture, work environment, pay, employee benefits, and commute.

My advice if you get the severance package -in this economy -you should be thankful :) You have a great opportunity to find a better company and a fulfilling career.

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Post ID: @1vno+133Aav8D

I am hearing from my manager in Fund Admin in Channel Center that State Street was paying no bonus or raise to anyone that gets a "2" or lower on the PPR and that the normal bell curve (which s—ed before) is getting worse and 25% of the company will be assigned a 2 or below.

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Post ID: @ytd+133Aav8D

It would be interesting with all the layoffs if they did a percentage breakdown by job level.

  1. What percentage of Senior mgmt has been laid off (Big time salaries)

2 What percentage of Middle mgmt has been laid off

  1. What percentage of Low level workers has been laid off

In my opinion I bet number 3 would be at least 70% , with 2 coming in at 20% and 1 coming in at 10%

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Post ID: @ole+133Aav8D

Well....at the beginning of 2019 management indicated they would cut 1500 jobs in so called high cost locations (read American jobs). The final job loss was 3400 positions.
The same management team is now saying another 750 positions will be eliminated in high cost (American) locations in 2020. Assuming the same low estimate as last year that would mean closer to 2000 American based jobs eliminated.
And this is all happening against a back drop of record equity markets. God help us all if the market drops....the actual job cuts in this case will be huge.
Despite this the management team will be earning record merit, bonus and stock options Awards! So sad!

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Post ID: @gyt+133Aav8D

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