On the Mend and On the Move: State Street to cut 4.5% of Massachusetts Workforce

Massachusetts is on the mend and on the move – Deval Patrick

In yet another stunning example of the anti-growth agenda of the Patrick Administration, State Street has announced the layoffs of 558 Bay State Employees.  Boston.com has the story.

In a press release, State Street said about 530 information-technology employees will be provided with severance and outplacement services as their roles are eliminated over the course of the next 18 to 20 months; 338 of those positions are in Massachusetts.

Another 320 IT employees will transition to IBM or Wipro Technologies, two companies that provide State Street with outsourcing services; 220 of those positions are in Massachusetts.

As of today, the company’s Bay State head count is roughly 12,600. Worldwide, the company employs 29,450 people

Yet another stellar example of a business “Making it in Massachusetts.”  

About Rob "EaBo Clipper" Eno

  • BrocktonDave

    …They are offshoring 90% of their techology talent, and they are not losing money by any means.

    They are simply putting the screws to more people.

  • After Scott Brown carved out exemptions for them?

  • this is good news.more democrats to join the unemployed ranks.these democrats will now move out of state in search of a job,texas has plenty of jobs,move there.this will be good for those who are still employed.when the next congressional redistricting takes place,one more democrat will be out of office.and i thought the day could not get any better.hears to corporate america,make this the last state anyone would due business in.

  • The floor is yours!

  • gary

    from the wayback machine

    Just guessing, but it was possibility the change In Corp tax law to Unitary taxation that drove Fidelity out.  Unitary = Mass tax on worldwide profits.

    Its corporate headquarters was probably a very small profit center but with some heavy salaries and expensive real estate.

    The unitary allocation of MA Property + MA salary + MA sales relative to worldwide property, salary, sales might cause the allocation of worldwide taxable income to Massachusetts to rise substantially.

    State Street next?

  • Vote3rdpartynow
  • edfactor

    As someone who works in IT, especially in finance, and sometimes (but a while ago) having worked for State Street, I don’t have a problem with this.

    IT-heavy industries are undergoing major changes in labor and infrastructure. A lot of work is going offshore, which, overall, is good for the American economy. (Yes, it does mean those of us who are programmers must keep innovating to not lose our jobs to Asia, but that’s reality for us and everyone knows this in our field.)

    I have almost never seen a layoff of IT workers without saying, “I could have predicted that stuff was going offshore two years ago.” Same goes for State Street.

    Is offshoring tech jobs Massachusetts’ fault? No. Those jobs (just like at Fidelity) were going to Asia no matter what. (Perhaps our tax/regulatory climate speeds up the process a little.)

    Our state needs to encourage more new, small companies that grow into medium-sized ones. Our government should spend less time threatening big firms and more time talking to the small companies they would like to see grow. (i.e. Governor Patrick should spend no time talking to people like Fidelity CEO Johnson, lots of time talking to people like HubSpot CEO Halligan.)