In a move aimed at streamlining its organization and driving future growth, State Street Corp. announced plans to lay off approximately 1,500 employees. The news, confirmed on Monday, followed an announcement by company CFO Eric Aboaf at the Goldman Sachs U.S. Financial Services Conference on December 6th.
While specific locations and departments affected by the layoffs remain unclear, it’s confirmed that the reduction spans both Massachusetts and New Hampshire, where State Street maintains offices in Boston, North Quincy, Burlington, Cambridge, and Nashua.
"This trend is disturbing and points at an upcoming economic slowdown. Travel bookings are down by 65% and ground transportation industry is in a real bad shape. This kind of news is very de-motivating at this point of time." - said Rajwant Singh, founder of Boston Luxor Limo.
The company expects the workforce reshuffle to cost $175-200 million, primarily in severance expenses. In explaining the decision, Aboaf emphasized the company’s commitment to "key focus areas aimed at propelling our strategy forward," building market share, and securing long-term success.
The layoffs are part of a wider multi-year transformation plan designed to boost productivity and efficiency. Despite the reduction, State Street plans to redeploy employees wherever possible, leveraging its internal talent mobility programs to match skills with emerging needs within the company.
"Over the past several years, we have significantly enhanced our ability to facilitate internal mobility and increase employee readiness for future roles," said spokesman Brendan Paul, highlighting the company’s efforts to minimize the impact of the layoffs.
The news of the layoffs arrives amidst a broader landscape of corporate restructuring in the financial services sector. While specifics about the affected departments and locations remain unavailable, State Street’s commitment to long-term strategic goals and investments suggests a deliberate and forward-looking approach to navigating the future of its workforce and overall business landscape.
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