Bank of New York Mellon to lay off 1,800
Pittsburgh Business Times - by Patty Tascarella
Bank of New York Mellon plans to reduce its workforce by 4 percent, or 1,800 positions, the company announced late Thursday.
“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. We will take advantage of natural turnover to lessen the impact on existing staff,” Robert P. Kelly, chairman and chief executive officer said in a statement.
Spokesman Ron Gruendl would not provide specifics, including how BNY Mellon’s Pittsburgh operations would be affected, though he reiterated that the cuts would be global.
“We’re not breaking out (numbers) along geographic lines or business lines,” Gruendl said.
In October, the New York-based company (NYSE: BK) reported income from continuing operations of $305 million, or 26 cents per share for the third quarter, compared to $642 million, or 56 cents per share from the year-ago quarter
New York-based BNY Mellon remains Pittsburgh's third-largest bank in terms of deposits.
Also in October, the U.S. Treasury Department revealed details about its $700 billion Troubled Asset Relief Program, which will acquire bad mortgages from troubled financial institutions and get the credit markets back on track. The Treasury tapped BNY Mellon as master custodian of TARP, providing accounting, holding all cash and assets in the portfolio and providing valuation services. BNY Mellon’s stock price rose 13.17 percent, closing at $34.72 that day. It closed Thursday at $29.25.
ptascarella@bizjournals.com | (412) 208-3832
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