Print
Email
Print Edition StoriesFinancial services firm State Street Corp. (NYSE: STT) today provided an update on the multi-year “IT transformation,” that it announced in 2010.
The Boston company, with more than 4,000 employees worldwide, said it is expanding its relationships with outsourcers IBM and Wipro Technologies, which are taking over support components of State Street’s technology infrastructure, application maintenance and support.
As part of the update, State Street said it will cut 530 IT employees, giving them severance and outplacement services, as their roles are eliminated over the next 18 to 20 months. Another 320 IT employees will transition to become IBM or Wipro employees. State Street said the IT transformation program, scheduled for completion in 2014, is designed to drive innovation and improve service.
When it announced the program in November 2010, State Street said it expected to achieve annual pre-tax run-rate expense savings of between $575 million and $625 million by the end of 2014 and to record pre-tax restructuring charges of between $400 million to $450 million over the four-year period. The company expects to record approximately $110 million to $130 million of those restructuring charges in the second half of 2011 in connection with the severance and related costs.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
RSS Feeds
