State Street to Cut Up To 1,800 Jobs

BOSTON -- State Street (STT Quote) on Wednesday said it will cut 1,600 to 1,800 jobs, or 6% of its global work force, between now and the end of the 2009 first quarter, in an effort to reduce operating costs.

The financial services company will reduce its staff mostly by consolidating middle and senior management ranks, it said after the market closed. Most of the cuts will be in North America, with the rest in Europe and the Asia-Pacific region.

The company expects to record pretax charges between $325 million and $350 million, or 51 cents to 55 cents per share, to account for severance, benefits and other costs. The moves will save $375 million to $400 million annually, State Street said.