A new round of State Street layoffs (NYSE:STT) was announced on Wednesday, affecting a large chunk of the company’s senior management as it seeks to cut costs and trim its operations.
The custodian bank, based out of Boston, Mass., announced that it has plans to lay off about 15% of its senior management, according to a Bloomberg report that cited people familiar with the matter. The layoffs will reportedly affect some of the company’s most prominent positions, including its executive vice president and senior vice president roles, among others.
The State Street layoffs will begin on Wednesday as the company seeks to continue its restructuring initiative geared towards reducing costs. The custodian bank has been seeking to make its structure leaner under the leadership of its CEO Ronald O’Hanley, who took over as company boss this month.
He is also seeking to automate a chunk of the company’s operations and simplify the organizational structure that it has had in place for years.
The company plans on eventually cutting a total of 7,000 employees from its global workforce, which currently includes at least 39,000 workers. The move comes following an underwhelming earnings report for the company’s latest quarter, which saw its profit miss expectations for the first time in the last two years.
STT stock is up about 2.3% on Wednesday on the news. The stock declined a touch over 0.1% after the bell following the report.