State Street Corp. said today it will slash 630 jobs -- including 260 in
Massachusetts -- as the Hub money manager continues to cut costs amid pressure
The layoffs came as the company, one of the Bay State's largest employers, announced that its fourth-quarter earnings rose 26 percent to $468 million. State Street's operating profit totaled $521 million, topping Wall Street analysts' expectations on a per-share basis.
"The fourth-quarter and full-year 2012 results reflect continued resilience across our asset servicing and asset management businesses," CEO Jay Hooley said. "We achieved these results in a constrained revenue environment, generating positive operating leverage and continuing to invest in key markets that position us for further growth."
Hooley said the job cuts, which amount to about 2 percent of State Street's work force of 29,650 as of November, will help "capture further efficiencies and cost savings" in 2013. The firm is also investing in technology.
In the final three months of 2012, State Street's revenue rose 7 percent to $2.46 billion, as stock market gains boosted the custody bank's investment management fees. But foreign-exchange trading revenue fell by 21 percent.
Herald wire services contributed to this report.
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