Possible job cuts at State Street

Like so many financial services firms these days, the latest quarterly results of State Street didn't make pretty reading. And it seems that job cuts within Ireland's largest fund administration employer might be on the cards.

State Street has pulled in a fourth quarter income of just $65m, or 71% less than the corresponding period in 2007. In fact, things have gone so awry that analysts are suggesting the firm might be a possible takeover target.

However, one possible positive for its Irish operations was that Richard E. Logue, the firm's chairman and chief executive said: "We are meeting with potential customers from very large fund complexes that are considering outsourcing their back and/or middle office to us in order to create some variable expense for their organisations. Also large hedge funds, that have historically self-administered their holdings are looking for an outsource partner to create more transparency for their funds and their shareholders."

In Ireland, State Street now employs over 2,000 people, making it the biggest fund administrator in the country, since its recent acquisition of Investors Trust Europe. This figure is unlikely to increase any time soon.

Gavin Nangle, head of business development at State Street in Ireland, says: "The reality is in this market recruitment has slowed down, but as and when we need people to fill roles we'll hire them. However, we, like a lot of companies in our business, are reviewing staff numbers and that is a typically a trending down rather than a trending up exercise."

The firm is, however, hoping to lure some of Ireland's Polish fund administrators to its Krakow office, which it has been expanding since moving into a larger office in May last year.

Nangle insists the expansion isn't at the expense of Irish roles, but admits that the talent pool in Ireland makes the country's workers an obvious recruitment target.