Heard there were going to be layoffs in fund admin starting tomorrow and happening throughout the summer
Any chance we can get some more info on this?
20 replies (most recent on top)
@YQrBWQx-2uri Yes, I am sure that you are correct. I no longer work at State Street but so many VP's report to SVP's and AVP's sometimes work for other AVP's. Too many senior level personnel without a career path as mentioned by many on this thread. As mentioned above that work produced by India is not acceptable to many of State Street's clients. As a side note, I recently met someone who was a friend's colleague. Not surprised to find out that he worked for State Street and was from India. Unfortunately, it was very difficult to converse with him which I found very sad. Believe me I am not trying to be elitist since I have many friends who are from different cultures. Just an observation from a former State Street employee.
The stock is dropping fast, guess this means they are going to have to lay off more people .
But who ? They gutted almost all of the low to mid level staff in the U.S
They even started laying off Officers, Assistant Vice Presidents and Vice Presidents.
Same in Italy. They are moving everything in Poland where job cost nothing. They cut here and hire there. NO respect for those that worked hard to create what is now SSB in Italy (33% of the local Depo Bank market or even more!!).
@YQrBWQx-9smm Great to hear that you found a new position in a short-time. I have told many of my peers in my Linkedin network that they should start looking for a new position soon. Some of them are still working for State Street Corporation but have been displaced since their former roles in the Fund Administration area were outsourced to India.
Sorry to hear that. It is always a shock. There is life after State Street. I was RIF'ed last year that found a job in 4 weeks with better salary and benefits. I am 50+. The upside is it is a great employment market.
I'm sorry to hear that. Are you in Quincy?
It seems likely a lot of Boston & Quincy jobs will be gone in the next few years. Have you seen Workday? The open jobs are mostly in Poland & India.
@YQrBWQx-7wee So sorry to hear that you were notified. Any details will help since I might be next. It is really sad that this large company that employee's many in the New England area continue to keep outsourcing and haven't been penalized for it. Eventually, their reputation will suffer though. I just read an interesting article by a bank analyst about State Street Corporation.
It wasn't a favorable article but very gloomy.
Got notified today.
@YQrBWQx-2wwz I and many of my peers/colleagues at State Street still think they may merge with one of the other large financial services organizations. At least, I believe they will lose a lot of their fund administration client's. They provide many services for some of their larger client's but some of these management companies could decide to leave entirely or only have State Street as their custodians. Of course I have no idea but I wouldn't be surprised if this happens if not this year but in the long-term.
Evil laugh
@Post ID: @YQrBWQx-2bst I agree there are way too many AVP, VP and SVP at State Street.
I think its because once a person reaches their max pay grade, they can no longer receive any
raises. So the person is promoted to AVP which allows the person to continue getting raises and
still doing the same old job.
The issue is SSB has too many AVP, VP, and SVP roles because the employment laddering has basically too few types of roles, such as those found in other organizations. It doesn't lead to a normal promotion path. The titles lock people into positions because the titles make it difficult to find positions outside of SSB. It also leads to the daisy-chaining of VP reporting to VP roles and SVP reporting to SVPs. Most organizations cleaned that situation up a decade ago.
@Post ID: @YQrBWQx-2iqv
A long long time ago every one thought Bank of New York was going to buy State Street, but instead they took over Mellon
I agree and was told that the fund administration area would be one department that loses the most positions to India. Although, I don't believe it is going to improve earnings in the long run. Once State Street loses more of their clients their will be even fewer reasons for State Street to retain their current staff in the United States. You need to begin looking for another position ASAP.
The outsourcing will continue to increase. State Street may even merge with another large corporation at some point.
I am so pleased someone finally raised the issue of VPs into other VPs and SVPs into other SVPs.
There are so example of thats... what kind of properly managed company would allow that?
As for the HR layoffs....not many tears will be cried over those...bloated, useless and paper shufflers...and those are the good ones....
More cuts to come....stay tuned...
More to come....more Beacon projects. How are they paid? Lay people off even though the tools don’t work. I can see them cutting levels soon too. Too many VPs into VPs and SVP into SVPs etc
Lots of layoffs in HR last week
There are going to be regular layoffs in fund admin for the next 2-3 years until there is nothing left but VP's and AVP's at best. If you work in fund admin and do not already know this you deserve to lose your job.
The quality of fund admin work already being done in India is embarrassing. Clients, auditors and the like are going to be furious and State Street will all give them the middle finger. Even with all the fee concessions they will end up making to clients the profit margins will be higher because of the c-ap wages they are paying in India.
The best thing you can do now is have your resume ready to find another job. If you can get a severance package and find another job quickly than it is free money and you never have to see State Street again.
The smart people are already working on an exit plan while the dumb ones hope for a miracle, or are delusional enough to think the company cannot survive without them.
There is a working group to standardize expense accruals and payments across all regions. Once that is finished in the next month it will start to be rolled out and layoffs will hit the teams. That means fund admin.
Folks -- do you not get it yet? Layoffs have been and will continue to be the only management tool the overpaid executive team from State Street will use.
So yes---fund admin days are numbered. A week from now there will be less fund admin staff in the US than there are today. And then a month from now even fewer and 6 months from now fewer yet again.
Wake up--its the only tool the executive team has in its tool box. Cut, cut, cut staff levels in the US in order to meet Wall Street earnings targets and continue to receive their fat cat executive bonuses.
So to answer the question dfirectly--yes---staff cuts in fund admin are coming! Bigly!