State Street Corp. eyes 7,000 layoffs by 2020
Never saw in print.
"State Street cutting 360 more jobs in cost reduction effort" by Beth Healy Globe Staff March 16, 2016
State Street Corp. said it would lay off 252 people in Boston and Quincy, as part of a broad cost-cutting effort that comes on top of 170 local layoffs announced last fall.
The majority of the job cuts will focus on senior executives at the company, spokeswoman Anne McNally said. Ninety new people are expected to be hired, for a net local job loss of 162, she said.
The Boston-based financial services giant said in a filing with the securities regulators that it would take pretax charges of $300 million to $400 million for a multiyear expense-cutting program, called “State Street Beacon,” through 2020.
The company said the lion’s share of that, or as much as $300 million, would go toward severance and benefits costs related to the layoffs. About $100 million will be charged off in the first quarter of this year.
Globally, a net 360 jobs will be lost in this round, from a workforce of about 32,000. Last October’s total layoff company-wide was 600.
State Street, which manages money and also handles administrative services for mutual funds, pensions, and other large investors, is “looking at the different businesses we’re involved in, and their growth, and whether it makes sense to stay in them,’’ McNally said.
The layoffs were first reported by the Boston Business Journal.
The Beacon project is focused on further “digitizing” State Street’s business, so more functions are handled with technology. A major Massachusetts employer, State Street has been under pressure from Wall Street to slash expenses as low interest rates have eaten into its profits.
Meaning they DON'T NEED YOU, HUMAN!
The company also has faced numerous regulatory issues, including overbilling customers more than $200 million over 18 years. State Street last week said its chief financial officer, Michael Bell, is stepping down.
Overall, State Street has added 1,000 people over two years in Massachusetts, to 12,900, McNally said. But the mix of jobs is changing."
See: State Street Global names new execs to top of ETF business
Why you out a job.
It's not like they aren't making money, either:
"State Street, an asset custodian and an investment manager for large institutions, said its fourth-quarter earnings rose 17 percent, despite a drop in revenue. The Boston financial giant reported net income of $547 million for the quarter."
For whom the Bell tolls:
"State Street Corp. said its chief financial officer, Michael W. Bell, will step down within the next year, after a successor is appointed. Bell, 48, is a member of the Boston financial service company’s management committee and became CFO in August 2013. According to a biography on State Street’s website, he is responsible for the company’s financial strategy, as well as treasury, accounting, tax and financial reporting, and investor relations. Carolyn Cichon, a spokeswoman for the company, in a statement said Bell staying on for a period would “enable a smooth transition.” State Street in recent years has been through a series of issues with regulators, including litigation over allegedly overcharging customers for foreign exchange services and a pay-to-play settlement related to paying consultants for pension business. And in December the company announced that it had overbilled certain customers by $200 million for administrative services over 18 years. In January, it said it would reimburse clients $240 million in that matter."
Get a good look; it's the last time you will see them here.
Now take your medicine!
UPDATE:
"State Street wants broader access to retirement plans" by Beth Healy Globe staff June 05, 2016
State Street Global Advisors plans to start lobbying Congress to require universal access to workplace retirement plans in the private sector.
In an open letter to US lawmakers scheduled to be released Monday, the Boston investment giant will urge Congress to take steps such as requiring private employers to automatically enroll employees in 401(k)-type savings plans. They would also need to provide certain basic, default investments, such as target-date funds that own a mix of stock and bond funds, based on a person’s age and risk appetite.
In addition, the company is recommending tax credits for small employers to cover the administrative costs of the plans and is suggesting that businesses be allowed to band together to offer retirement plans.
“This is a problem that directly threatens the well-being of future generations and our overall society,” said State Street Global’s chief executive, Ron O’Hanley, in a statement. He said the company’s proposal “does not seek to reinvent the wheel or suggest a new expensive government program,’’ but to expand Americans’ access to workplace retirement plans.
That's what all the sleight of hand, stealing, and lying was for?
As one of the world’s largest investment managers, overseeing $2 trillion, State Street stands to benefit from expanded retirement offerings....
But they are doing for the well-being of society and future generations, yup.
--more--"
