Employees of State Street
are more enthusiastic about leaving than anyone thought they would be. Earlier this year the Boston firm budgeted $125 million to $175 million to pay severance packages to 1,800 of its 15,000 workers. But things did not go exactly as planned, reports the Boston Herald
The paper reports that as many as 3,000 workers took the firm up on its voluntary separation program. That is a number that State Street itself will not confirm. However, Ronald Logue
, chief operating officer at State Street, told Wall Street analysts that the cost of the severance program will exceed the $175 million budgeted. Most of those taking the offer are expected to leave by the end of the month.
Meanwhile, State Street this morning said that it is selling its private asset management business to Charles Schwab for a reported $365 million.
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