State Street Corp. (STT), the third- largest custody bank, will cut an additional 850 jobs over the next 20 months after reporting earnings that missed analysts’ estimates because of rising expenses, according to Bloomberg.
The cuts are on top of 1,400 reductions announced last year and scheduled to be completed by the end of this year. Costs on an operating basis increased 20 percent in the second quarter from a year earlier, driven by a 22 percent gain in salaries and employee benefits, the Boston-based bank said today.
“It seems expenses were higher than many people expected,” Kenneth Usdin, a senior analyst for Jefferies & Co. in New York, said during a conference call with company execs….
http://www.bloomberg.com/news/2011-07-19/state-street-second-quarter-profit-rises-5-2-on-acquisitions-markets.html
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