State Street Corp., the Boston-based financial services giant, will slash about 1,500 jobs before the year draws to a close.
The layoffs were announced on Dec. 6 by Eric Aboaf, vice chairman and chief financial officer of State Street, at the Goldman Sachs US Financial Services Conference. The company will incur about $175 million to $200 million in severance costs associated with the layoffs, Aboaf added.
As of Sept. 30, State Street had about 42,000 employees globally, a spokesperson confirmed, meaning that the current round of layoffs represents an approximately 3.6 percent reduction in global workforce. In September, the company said about 8,000 employees were based in Massachusetts.
A spokesperson for State Street declined to specify which departments would be affected, or how many of the eliminated roles would be based in Massachusetts.
“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,” the spokesperson said in a statement. “To limit the impact of these reductions, we will continue our focus on internal mobility and redeployment of roles to help match talent with the areas of critical need within the company.”
Shares of State Street were up about 1.2 percent as of Monday afternoon, with the company holding a market cap of nearly $23 billion, according to Bloomberg.
It appears to be the largest round of layoffs from State Street since 2021, when the company cut 1,200 positions, largely in middle management, after avoiding layoffs following the onset of the COVID-19 crisis.
The job cuts come just months after State Street moved its headquarters from One Lincoln St. to the newly minted, 43-story One Congress office tower, where it has locked down 27 floors of space. This coincided with a change in the company’s remote work policy: As of November, all employees are required to come into the office four days a week. Before that, remote work policies depended on individual roles.
The layoffs come ahead of a revamp in State Street’s leadership team. Louis Maiuri, president, chief operating officer, and head of investment services, is slated to retire by early next year after a 10-year tenure. CEO and chairman Ronald O’Hanley will take on the president and investment services roles, while Mostapha Tahiri, who currently leads the company’s Asia Pacific, Middle East, and North Africa arms, will become the chief operating officer.
In addition to its Boston presence, State Street also maintains offices in Burlington, Cambridge, North Quincy, Nashua, N.H., and Stamford, Conn.