Financial services giant State Street (NYSE:STT) announced that it would eliminate 1,200 jobs before the end of this year. STT has previously cited “lingering” economic weakness and other macroeconomic challenges as reasons for State Street layoffs.

STT stock is up about 0.6% this morning as the markets open.

More About the State Street Layoffs

State Street’s job cuts were disclosed by its CFO, Eric Aboaf, last week at a conference hosted by Goldman Sachs (NYSE:GS).

The job cuts will affect about 3.6% of State Street’s total workforce of roughly 42,000 people.

“While we have added employees in distinct areas and business functions, we must now position ourselves for long-term success and take difficult but necessary steps to further streamline our organization,” a spokesperson for the firm told Boston’s WBZ News.

The last time the bank cut this many employees was in 2021, when it also laid off 1,200 workers. Those State Street layoffs came in the wake of the coronavirus lockdowns.

A Mixed Financial Picture for STT

In the third quarter, STT’s revenue dropped 9% versus the same period a year earlier to $2.69 billion, while its net income tumbled 39% year-over-year to $422 million. Its bottom line was dragged down by a decline in its net interest income, which fell to $624 million last quarter from $691 million in Q3 of 2022.

On a positive note, State Street spent $1.2 billion on share repurchases and dividends last quarter.

Heading into today, STT stock had risen 8% in the last month, but the shares were down 3.8% in 2023.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.