State Street Corp. is laying off 6% of its workforce, or 1,800 people, in the first quarter. Initially, the layoffs will cost the company as much as $350 million, or 51 cents to 55 cents a share, but that will then revert to $400 million in annual savings.
Most of the people being let go are middle and senior managers in North America.
State Street Chairman and CEO Ronald Logue said the firm is making the cuts to continue delivering strong results; in the third quarter, State Streets earnings rose 33% to $477 million, or $1.09 a share. For the full year, State Street is projecting earnings to rise between 10% and 15%.