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State Street cutting 360 more jobs in cost reduction effort

State Street Corp. headquarters in Boston.MICHAEL FEIN/BLOOMBERG NEWS/FILE

State Street Corp. said it would lay off 252 people in Boston and Quincy, as part of a broad cost-cutting effort that comes on top of 170 local layoffs announced last fall.

The majority of the job cuts will focus on senior executives at the company, spokeswoman Anne McNally said. Ninety new people are expected to be hired, for a net local job loss of 162, she said.

The Boston-based financial services giant said in a filing with the securities regulators that it would take pretax charges of $300 million to $400 million for a multiyear expense-cutting program, called “State Street Beacon,” through 2020.


The company said the lion’s share of that, or as much as $300 million, would go toward severance and benefits costs related to the layoffs. About $100 million will be charged off in the first quarter of this year.

Globally, a net 360 jobs will be lost in this round, from a workforce of about 32,000. Last October’s total layoff company-wide was 600.

State Street, which manages money and also handles administrative services for mutual funds, pensions, and other large investors, is “looking at the different businesses we’re involved in, and their growth, and whether it makes sense to stay in them,’’ McNally said.

The layoffs were first reported by the Boston Business Journal.

The Beacon project is focused on further “digitizing” State Street’s business, so more functions are handled with technology. A major Massachusetts employer, State Street has been under pressure from Wall Street to slash expenses as low interest rates have eaten into its profits.

The company also has faced numerous regulatory issues, including overbilling customers more than $200 million over 18 years. State Street last week said its chief financial officer, Michael Bell, is stepping down.

Overall, State Street has added 1,000 people over two years in Massachusetts, to 12,900, McNally said. But the mix of jobs is changing.


Beth Healy can be reached at beth.healy@globe.com. Follow her on Twitter @HealyBeth.