State Street plans 1,500 layoffs  

The vice chair of State Street Corp. said Wednesday that the company plans to lay off 1,500 employees.

Speaking at the Goldman Sachs U.S. Financial Services Conference Wednesday, Eric Aboaf, the vice chair and CFO of State Street, outlined measures the asset management firm is taking to increase fee revenue growth and boost productivity.

“To deliver these productivity efforts, we expect to take a charge in the fourth quarter of approximately $175 to $200 million, attributable to severance costs primarily related to about 1,500 head count reductions,” Aboaf said, adding that the actions will begin at the start of 2024.

The efforts to improve productivity include integrating State Street’s joint venture operations, he noted. On Monday, State Street announced that it was assuming full control of Statestreet HCL Services, a joint venture in India with HCL Tech. In August, the company had announced that it was taking full ownership of another joint venture in India, with Atos Group.

The news of the layoffs was first reported by Pensions & Investments.

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