As part of an "IT transformation program" announced in November 2010, State Street is shedding 850 jobs. About 320 IT employees will be transferred to outsourcing partners IBM and Wipro; another 530 IT employees will be laid off as their jobs are eliminated over the course of the next 18-20 months. Nearly all of the impacted employees are in North America. State Street currently employs approximately 4,000 IT employees worldwide.

State Street is expanding longstanding relationships with IBM and Wipro, through which the two companies provide general IT support and application maintenance and support. A bank spokesperson says the outsourcing arrangement does not include application development. The 320 employees being outsourced will continue to work in their local markets, the majority in Massachusetts.

State Street says its remaining internal IT staff will focus on research and development, including further use of private-cloud computing. State Street's advanced internal cloud computing initiative was one of the reasons Bank Technology News gave chief innovation officer Madge Meyer an Innovator of the Year award in June.

State Street expects to reap annual pre-tax expense savings from its business transformation initiatives of between $575 million and $625 million by the end of 2014 and to record pre-tax restructuring charges of between $400 million to $450 million in total over the four-year period.