State Street Plans to Cut 630 Jobs, Shares Surge

by Christopher Freeburn | January 18, 2013 12:39 pm

Sjobless unemployment 630 300x227 State Street Plans to Cut 630 Jobs, Shares Surge[1]tate Street (NYSE:STT[2]) announced on Friday that it will eliminate hundreds of jobs ahead of an expected challenging economy for 2013[3].

Investors liked the news, sending shares of State Street climbing about 6% in Friday midday trading.

The financial services company, based in Boston, said that it will lay off 630 workers, with 260 layoffs hitting its Massachusetts workforce. State Street will take charges of $139 million this year relating to the job cuts, the Boston Globe notes.

News of the layoffs came as State Street posted fourth-quarter earnings of $468 million, up 26% from the same time last year. Revenues climbed 6% to $2.45 billion.

For 2012, the company earned $4.20 a share, up 11% from the prior year, on $9.65 billion in revenue.

State Street CEO Joseph L. Hooley noted that the job cuts were meant to boost efficiency and structure the company to meet this year’s anticipated difficult economic climate.

On Thursday, Citigroup (NYSE:C[4]) posted fourth-quarter earnings that rose 25% over last year, but still disappointed Wall Street analysts[5].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/06/jobless-unemployment-630.jpg
  2. STT: http://studio-5.financialcontent.com/investplace/quote?Symbol=STT
  3. eliminate hundreds of jobs ahead of an expected challenging economy for 2013: http://www.boston.com/businessupdates/2013/01/18/state-street-corp-discloses-plans-cut-jobs/Jc1A9bSwcVzILqkhVp9Z6N/story.html
  4. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  5. but still disappointed Wall Street analysts: http://investorplace.com/2013/01/citigroups-big-earnings-disappointment/

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