GLOBAL - Financial services giant State Street is set to make 1800 staff redundant worldwide in a bid to cut costs across the group.
The firm – which owns fund manager State Street Global Advisors – said the jobs would be lost during the second quarter through a mixture of voluntary early retirements and enhanced severance packages.
The firm is looking to cut operating expenses by £80m over the remainder of 2003.
State Street posted first quarter revenues of US$1bn (£637m), approximately 5% up on the first quarter 2002.
SSgA recorded fees of US$122 (£77.7m), US$2m lower than the result posted at the same time last year.
*More bad news on the banking front - Germany’s Deutsche Bank also issued a surprise 1Q profits warning last week ahead of its results.
The bank prepped investors for a near E200m net loss in the first three months.
Deutsche has been forced to make write-downs of almost E1.3bn, although these are likely to be offset by gains on the sale of its Global Securities Services - Deutsche’s custody division bought by State Street last year.
A E625m plunge in Deutsche’s equity folder was cited as the main reason for the fall as well as the dire state of the German banking sector.
Former home secretary Amber Rudd is to return to the cabinet as work and pensions secretary after the resignation of Esther McVey.
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There have been a total of 15 ministers responsible for pensions since 1997. Here is the list in full.