Boston-based State Street Corp. is laying off 15% of its senior management — including executive vice presidents and senior vice presidents — beginning Jan. 9, Bloomberg News reported, citing "people with knowledge of the matter."
CEO Ronald O'Hanley, whose stint as CEO of the custody banking and asset management giant took effect Jan. 1, first spoke about the layoffs during a Goldman Sachs conference held Dec. 5, 2018.
During the event, O'Hanley discussed his plan to reduce expenses through automation and simplify the company and said the company needs to "structurally compress" its senior management ranks by 15%. "When you do that, one, you're simplifying the way business gets done at State Street. But two, we just don't need as many top managers to get the work done," he added.
Marc Hazelton, a spokesman for State Street, declined to give Bloomberg News any comment on the number of senior managers affected in the planned layoffs.