BOSTON – State Street Corp., the world’s largest custodian of assets, said it has eliminated 3,100 jobs following the announcement of a voluntary-severance plan in April. That exceeds the company’s initial goal of about 1,800.
The company, which provides administrative services such as daily pricing of mutual funds to financial-services companies, will take a charge of $296 million, or 58 cents a share, when it announces second-quarter earnings, spokeswoman Carolyn Cichon said.
Excluding the charge, State Street said it expects to report improved second-quarter operating results. State Street’s first-quarter earnings fell by almost half from the year-earlier period.
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The voluntary-severance plan, which offered an extra week of
severance pay for each year worked, and five extra years of credit toward retirement benefits, came as the company sought to cut about $125 million in expenses through the end of the year.
About 95 percent of the staff reductions were voluntary, and another 150 workers’ jobs were cut, the company said. Due to the large number of volunteers, State Street plans to add between 800 and 1,000 employees over the next year. The company now has about 22,000 employees worldwide, including about 15,000 in the United States, spokeswoman Arlene Roberts said. (Bloomberg News)
EMS taps StreamServe to automate supply chain communications
ATTLEBORO – Engineered Materials Solutions Inc., one of the world’s largest clad metals producers, chose StreamServe Business Communication Platform to increase the flexibility of and automate its supply chain communications.
The new electronic communication system will allow EMS, based in Attleboro, to reduce costs and manual labor and increase both supplier and partner satisfaction, according to an investor news release. StreamServe BCP, which integrates with almost any ERP system, provides EMS with a single, universal system for a variety of business functions. It automates fax and email delivery of purchase orders and invoices. EMS will also have the capability to introduce online storage and reprint functionality to its existing business processes.
