State Street Corp. plans to eliminate approximately 1,200 jobs this year, mostly in middle management, another cost-cutting move after it reduced its global real estate footprint by about 1 million square feet, an executive said Tuesday.
Boston-based State Street CEO Ron O’Hanley had said in April that the company would not conduct any layoffs through the end of 2020 in light of the pandemic, saying at the time “this is the right decision for our people, our clients and our communities.”
But at an investor conference last month, he signaled layoffs could be coming, saying the no-layoff pledge “will go away.” During an earnings call on Tuesday, State Street Chief Financial Officer Eric Aboaf announced the job cuts and said the company was taking an $82 million severance charge as a result.
