Investment manager BNY Mellon has said that it will cut about 1,500 positions or approximately 3% of its global workforce this year, in an effort to contain rising expenses.
The New York-based banking giant said a portion of the job cuts will come from natural turnover and by implementing an immediate hiring freeze across much of the company.
In order to minimize the impact of the cuts, the investment manager has decided reduce the use of temporary workers, consultants and contractors.
BNY Mellon chairman and CEO Robert Kelly said over recent quarters, BNY Mellon has succeeded in building positive revenue momentum. However, expenses have been growing unsustainably faster.
"We expect our natural turnover and immediate hiring freeze will reduce the impact on existing staff," he added.
In the second quarter, the bank’s expenses were up about 20% from the year-ago period, due in part to higher legal and regulatory costs. Its non-interest expenses rose 22% from a year earlier.
A spokesman of the bank said that more detail about the job cuts will be provided by the end of the year and its executives had not yet decided what parts of the company would be affected.
The company, however, added that the newly announced cuts would not affect its plans to move 250 jobs from Pawtucket, Rhode Island, to Westborough this fall, and to add an additional 150 positions there.
BNY Mellon is not the only global bank to have announced job cut. Boston-based State Street Corp., which competes with Mellon to manage money and handle back-office services for large investment funds, last month said that it would cut 850 technology jobs, including 558 positions in Massachusetts.
Recently, Britain’s HSBC also announced that it would cut 30,000 jobs as it pulls back from countries including the US and Russia.