State Street Corp. announced Friday it will slash a total of 2,300 jobs by the end of 2019, 800 more than it previously had targeted.
The Boston-based custodian banking firm had said in January it would pare its global workforce by 1,500 jobs and increase automation, as the Herald previously reported.
“Disciplined expense management continues to be one of my top priorities,” State Street CEO Ron O’Hanley told analysts Friday. “The firmwide hiring freeze for all non-critical roles outside of (Charles River Development) has been very effective. Year-to-date, we have already reduced high-cost location headcount by more than 1,800 staff, and expect that as a result of our actions we can increase that number to 2,300 by year-end.”
A year ago, State Street acquired Burlington-based Charles River Development for $2.6 billion. O’Hanley has previously said CRD is not part of the company’s hiring freeze.
“Process automation efforts are in full gear, allowing us to decrease headcount while delivering even better service and outcomes for our clients,” O’Hanley continued. “Our focus right now is finding better ways to reignite revenue growth and generate additional expense reductions while driving sustainable improvements in our operating model.”
A spokesman for State Street said the company will be able to reduce its headcount to 2,300 by natural attrition and the hiring freeze in place. Furthermore, State Street will move jobs from high-cost offices — in the U.S. and parts of Europe — to lower-cost locales in India, other parts of Europe and China.
State Street announced in January it will relocate its headquarters in 2023 near Boston City Hall.
