State Street Corp. plans to lay off about 1,500 employees.
"We expect to take a charge in the fourth quarter of approximately $175 million to $200 million attributable to severance costs, primarily related to about 1,500 headcount reductions," said State Street Vice Chairman and Chief Financial Officer Eric Aboaf, during a presentation at the Goldman Sachs U.S. Financial Services Conference in New York on Dec. 6.
He did not offers further details, but a State Street spokesperson said in a separate statement that the workforce reduction is part of a "multiyear transformation journey to drive increased productivity and create efficiencies."
"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 organization," the spokesperson added.
Aboaf also discussed other State Street plans at the conference.
"We're streamlining our operations in India and have now assumed full ownership of our India operations joint venture with the Atos Group." He added that State Street intends a "similar undertaking with our joint venture with (HCLTech)."
"These consolidations will enable us to unlock productivity in the years ahead, generate immediate savings and lower operating costs," he added. "The consolidation will be a catalyst for significant improvements in our operating and operations globally."
State Street has about $3.7 trillion of assets under management.
The company's global workforce comprised 42,226 at the end of 2022, according to a financial highlights report issued on Jan. 20, 2023.