BOSTON (Reuters) - Bank of New York Mellon Corp (BK.N) plans to cut about 1,500 jobs, or 3 percent of its workforce, to stem rising expenses.
The job cuts are the latest in the financial industry, as institutions brace for slower-than-expected economic growth.
A spokesman for the New York bank, Kevin Heine, said on Wednesday it expects to provide more detail about the job cuts by the end of the year and an exact timetable and the number of layoffs to take place have not been determined.
The bank plans to reduce the total number of layoffs by starting a hiring freeze and through natural turnover, BNY Mellon Chief Executive Robert Kelly said in a statement.
Although the bank’s revenue has grown in recent quarters, Kelly said, “expenses have been growing unsustainably faster.”
The move is only the latest large layoff by a major bank amid broader economic concerns. Last week Britain’s HSBC Holdings Plc (HSBA.L) said it would cut 30,000 jobs as it pulls back from countries including the United States and Russia.
Other firms have cut smaller numbers of jobs this summer, including BNY Mellon’s chief trust bank rival, State Street Corp (STT.N). On July 19 the Boston company said it would eliminate as many as 850 technology jobs through layoffs and outsourcing.
BNY Mellon had already promised other cost-containment efforts, such as moving employees to lower-cost locations including Pittsburgh; Manchester, England; and India.
In a securities filing, BNY Mellon said it plans to take a restructuring charge tied to the job cuts in the second half of 2011, the amount of which it did not specify. The charge will be “more than offset” by a gain from its previously announced sale of a stake in financial technology provider ConvergEx Group.
BNY Mellon shares were down $1.0 or 4.7 percent at $20.11.
Reporting by Ross Kerber; Editing by Derek Caney and Gerald E. McCormick