State Street looks for savings from job cuts and cloud computing

US custodian State Street is to cut 1400 jobs, close offices and invest in new technologies as it looks to shave up to $625 million from its operating costs by 2014.

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State Street looks for savings from job cuts and cloud computing

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The restructuring, which will incur up to $450 million in costs over the next four years, comes as the company struggles to realise returns in a low interest rate environment.

The job cuts will start this week and be completed by the end of next year, the bank says.

The latest cuts follow the elimination of 1700 positions in Q1 2009, and the introduction of Lean methodologies to reduce spending across the organisation.

The bank says it will also make "sustained investments" in its technology platform, with a view to moving to lower-cost operating models through the development of private processing clouds.

Other actions include the introduction of flexible working arrangements, and the early termination of real estate leases.

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