BNY Mellon to cut about 3% of staff

BNY Mellon to cut about 3% of staff
The bank says costs will be a top priority this year; it also says it's still committed to its digital assets strategy despite the turmoil in crypto markets.
JAN 13, 2023
By  Bloomberg

Bank of New York Mellon Corp. is planning to lay off about 1,500 staff this year as the firm says costs will be a top priority for 2023.

The reductions account for about 3% of the bank’s 51,700 workforce at year-end, a person familiar with the matter said. The bank reported revenue of $3.92 billion in its fourth-quarter results Friday, missing analyst estimates.

BNY Mellon said in a statement that it had $213 million of fourth-quarter expenses tied to costs including severance and litigation reserves, though it didn’t break out the split. The firm said its $246 million increase in overall costs in the period was primarily due to severance. 

Chief Executive Robin Vince said on an earnings call that costs are a focus this year. “That will come from instilling further expense discipline across the firm and from focusing more on profitable new business growth, saying no to more things, when the economics aren’t what they should be,” he said. 

The cuts will focus on management positions, according to the Wall Street Journal, which reported news of the layoffs earlier. The bank’s workforce stood at 48,400 full-time employees at the end of 2019.

CRYPTO PUSH

The bank also said that it's still commited to its digital assets strategy despite the collapse of FTX and the turmoil in crypto markets. 

“This will continue to be a focus for us, not so much for crypto, but really the broader opportunity that exists across digital assets and distributed ledger technology,” Vince said on an earnings call with analysts on Friday. “If anything, the recent events in the crypto market only further highlight the need for trusted regulated providers in the digital asset space.”

In October, the bank in October launched a crypto custody platform that allows some clients to hold and transfer bitcoin and Ether. BNY Mellon, along with U.S. Bancorp and State Street, are among the traditional banks that have ventured into the crypto custody space. The New York-based bank didn’t disclose revenues or other data related to its crypto custody offering.

Top U.S. regulators have heightened their warnings on the risks for banks that engage in crypto-related activities. Earlier this month, the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency issued a fresh warning to lenders, saying events of the past year exposed vulnerabilities in the crypto sector.

‘IN the Office’ with Mary Ann Bartels, chief investment strategist at Sanctuary Wealth

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave