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State Street Corporation plans to cut 850 IT jobs

In an effort to increase the efficiency of IT operations and focus more on innovation, State Street Corp. plans to cut 850 jobs.

State Street Corp. said yesterday it will cut 850 jobs as it launches a second major round of layoffs in less than a year that are meant to increase the efficiency of IT operations and focus more on innovation.

A spokesperson for State Street said all the affected workers are in information technology and described the cuts as part of an "IT transformation.'' Of those to be laid off, 530 are "non-client-facing" IT employees and 320 are similar IT workers who will be shifted to outsourcing vendors IBM and Wipro Technologies.

State Street CIO Chris Perretta said that the technology jobs being eliminated or moved off to vendors are "incredibly crucial to us," but are more efficiently done by vendors invested in those technologies. State Street will get to leverage that vendor know-how and dedicate its IT people to things that are "out there on the technology edge."

About

Toni Bowers is Managing Editor of TechRepublic and is the award-winning blogger of the Career Management blog. She has edited newsletters, books, and web sites pertaining to software, IT career, and IT management issues.

5 comments
John_LI_IT_Guy
John_LI_IT_Guy like.author.displayName 1 Like

It's a shame they are laying off their own staff because some IT company said they can do it cheaper. Nobody cares about your company like your own employees. Most of these IT companies claim they can do it cheaper and more efficiently. That's because most of them are putting the screws to their own staff and making promises they can't keep. Nobody cares about your operations like your own employee's. Outsourcing is like hiring a hired gun. When will they get it through their skulls???

Jeff Stuart
Jeff Stuart like.author.displayName 1 Like

Trust me; the people getting laid off should be happy to get away from there!!!

v r
v r

It would be helpful to know the geographic location of the "lost" jobs as well where the people must move, if, in fact, they must.

michelinus
michelinus like.author.displayName 1 Like

Is it just me or has anyone else had their fill of management speak? 'Incredibly crucial to us' = not that crucial that we won't let someone else do them at a cheaper cost to us initially, but eventually we will end up paying more than if we had kept our own people. 'out there on the technology edge' = I don't really have a clue what I'm talking about but it sounds IT and futuristic. Companies would fare much better if they eliminated BS and incompetent managers who cannot relay solutions in plain English. I never trust anyone who can only use management speak to communicate.

AnsuGisalas
AnsuGisalas

"Out there..." Meaning "Far From Where I Am..."

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