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."