Business

Report: State Street will lay off 1,500 employees before year’s end

A spokesperson said the move is being made to “position ourselves for long-term success and take difficult but necessary steps to further streamline our organization.”

December 11, 2023

1 minute to read

Boston-based State Street Corp. will lay off about 1,500 jobs before the end of the year, The Boston Globe reports.

According to the newspaper, the cuts were announced Wednesday at the Goldman Sachs US Financial Services Conference by State Street’s vice chairman and chief financial officer Eric Aboaf. With about 42,000 employees around the world, the reductions will mean about a 3.6 percent loss in its workforce.

The layoffs will see the company spend about $175 million to $200 million in severance costs, according to the newspaper.

“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,” a company spokesperson said in a statement to the Globe. “To limit the impact of these reductions, we will continue our focus on internal mobility and redeployment of roles to help match talent with the areas of critical need within the company.”

The end of year cuts are the largest made by State Street since 2021 when 1,200 positions were eliminated after initially avoiding layoffs during the COVID-19 pandemic, according to the Globe.