A few hundred employees are thought likely to be impacted.
Bloomberg News reports that State Street’s new CEO is said to be executing on a plan to whittle the management ranks.
The firm is cutting 15% of its senior management beginning Wednesday as it continues to tackle costs, according to people with knowledge of the matter, who asked not to be identified because the information is private. The bank has hundreds of senior managers, and those affected include executive vice presidents and senior VPs.
Ronald O’Hanley, who took over this month as CEO of the money-management and custody-banking giant, is pushing to reduce expenses, automate more functions and simplify the organizational structure. State Street needs to “structurally compress” upper management, he said last month at a Goldman Sachs U.S. Financial Services Conference in New York.
In response to the news, Wells Fargo Securities put out a note estimating that the cuts involve a few hundred employees and will reduce annual expenses by as much as $75 million.
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