State Street Corp. will slash 1,800 more jobs on top of the 1,000 recently announced as part of a cost-reduction package that aims to cut operating expenses by $125 million throughout the remainder of 2003. The announcement came just before State Street reported a 46% decline in first quarter earnings, to $96 million, down from $178 million a year ago.
The company anticipates that severance benefits and expenses related to the reductions will result in a pre-tax charge of $125 million to $175 million and decrease reported second-quarter diluted earnings per share by approximately $0.25 to $0.35 per share.
The latest job cut will kick in at all levels of the company. The company's workforce stands at over 22,000 worldwide after its acquisition of the custody service of Germany's Deutsche Bank AG earlier this year, when it announced it would cut 1,000 jobs as it integrates the purchase.
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