State Street to cut jobs as profit falls short

http://www.marketwatch.com/story/state-street-to-cut-jobs-as-profit-falls-short-2015-10-23?link=MW_latest_news


Rattled by renewed concerns about the economy's health, markets turned volatile during the third quarter. Earlier this weak, fellow trust bank Bank of New York Mellon similarly pointed to unfavorable market conditions for its third-quarter profit decline, and several large money managers said they were bruised by market declines and investor outflows.

"In light of the continued challenging environment," Mr. Hooley said, State Street is accelerating its cost-cutting plan. During the quarter, the firm took a $75 million severance charge stemming from layoffs, and State Street said it plans to cut between 200 to 600 jobs globally. The company expects to save $50 million after the layoffs are completed by the end of next year.

Job cuts as of late have been massive due to the global slow down, so to preserve profits or at least make it seems like profits are being made people are being cut.