State Street, the financial services company based in Boston, is laying off about 1,500 employees.

Vice Chairman and Chief Financial Officer Eric Aboaf shared the news about “headcount reductions” last week at the Goldman Sachs US Financial Services Conference. The upcoming layoffs will cost State Street between $175 million and $200 million in severance payouts.

“While we have added employees in distinct areas and business functions, we must now position ourselves for long-term success and take difficult but necessary steps to further streamline our organization,” a spokesperson for State Street said in a statement.

State Street manages trillions of dollars in assets and had 42,000 employees worldwide as of September 30. The company did not say if the layoffs would be affecting workers in Massachusetts, where it has offices in Boston, Burlington, Cambridge and North Quincy.

Back in 2021, Street Street closed its New York offices as it embraced a hybrid work model in the wake of the COVID pandemic.. But this fall, The Boston Globe reported that the company would start requiring its employees to come into the office at least four days a week.

Reuters reported recently that big banks could be seeing more layoffs, citing “lingering economic weakness” and interest rate hikes. Morgan Stanley reported a roughly 2% workforce reduction and Bank of America has let go of more than 4,300 employees since the end of the first quarter, the report said.

Source: CBS News

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