The Bank of New York Mellon, the global custodian, has announced that it will cut its worldwide workforce of 43,000 by about 4 percent, or 1,800 positions.
“It has become clear that we need to take additional steps beyond our merger synergies to reduce expenses, given the current weakness in the global economy,” says Robert P. Kelly, chairman and chief executive officer. “We will take advantage of natural turnover to lessen the impact on existing staff.”
The Bank of New York Mellon operates in 34 countries and has $22.4 trillion in assets under custody and administration, about $1.1 trillion in assets under management and services $12 trillion in outstanding debt.
“They are not immune from what’s going on in the broader financial markets,” Mark Fitzgibbon, an analyst at Sandler, O’Neil & Partners LP in New York, told Bloomberg. “The financial markets are all interconnected, and the pressures on other financial companies are trickling down.”
The news follows the announcement earlier in the week that Citigroup would eliminate about 52,000 jobs, about 15 percent of its workforce.