Bank of New York Mellon plans 1,500 job cuts

August 10, 2011 - 9:45 AM

NEW YORK (AP) — Bank of New York Mellon Corp. says it will cut about 1,500 jobs, or 3 percent of its work force, in another sign of the banking industry's struggles.

CEO Bob Kelly says the bank's revenue has been growing but that "expenses have been growing unsustainably faster."

The bank says it will freeze hiring and reduce the use of temporary workers, consultants and contractors to try to minimize layoffs. It has also been trying to trim expenses in other areas.

Its shares fell 60 cents, or 2.8 percent, to $20.51 on morning trading.

BNY Mellon, the country's sixth-largest by assets, has flown under the radar for much of the financial crisis, losing money in the third quarter of 2009 but otherwise staying profitable.

But the banking industry has been hammered in recent weeks.