State Street’s global headcount reduction has claimed another high-profile Australian scalp, with David Travers’ December retrenchment from atop the custody business followed last week by the departure of the regional head of State Street Global Markets.
Russell Kennett was made redundant last week after 15 years with State Street, a tenure which in 2005 included being made (at that time) just the fourth non-American executive vice president of the company.
Kennett’s Australian branch responsibilities will be assumed by Ian Martin, the general manager of
State Street said in December it would cut approximately 6 per cent of its global workforce, 1600-1800 staff, in a bid to cope with the financial crisis. In order to maintain customer service, it flagged that most of the cuts would come from consolidating senior and middle management ranks.
In paying out those retrenched, State Street said it expected a pre-tax charge of up to US$350 million, for ongoing annualised savings of up to US$400 million.