MutualFundWire.com: A $3.69T-AUM AM's Parent Trims 3.6 Percent

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Tuesday, December 12, 2023

A $3.69T-AUM AM's Parent Trims 3.6 Percent

The publicly traded parent of a $3.69-trillion-AUM (as of September 30) asset manager is cutting about 3.6 percent of its staff.

Last week, Eric Aboaf, vice chairman and chief financial officer of State Street (parent of SSGA [profile]), revealed that the Boston-based firm expects to take a "repositioning charge" this quarter of between $175 million and $200 million, thanks largely to reducing their headcount by about 1,500 positions. State Street spokesperson Ed Patterson confirms that the company had about 42,000 employees worldwide as of the end of third quarter.

Aboaf did not reveal how many of those cuts would come from SSGA. Patterson declined to comment on the impact on SSGA.

"While we have added employees in distinct areas and business functions, we must now position ourselves for long-term success and take difficult but necessary steps to further streamline our organization," Patterson tells MFWire in an emailed statement:

To limit the impact of these reductions, we will continue our focus on internal mobility and redeployment of roles to help match talent with the areas of critical need within the company. Over the past several years, through our Talent Marketplace, we have significantly enhanced our ability to facilitate internal mobility and increase employee readiness for future roles. We will also reinvest in growing areas of the business or where there are opportunities to further expand our market share or product offerings, such as our Alpha platform, building out our private markets capabilities and investing in our core custody capabilities.