Financial services firm State Street Corp. will move 500 of its employees out of Manhattan offices and into coworking spaces, other existing offices in the suburbs or shift them to teleworking arrangements.
Vacating their Manhattan offices is a disappointment to real estate owners, who are trying to rebound from the losses they experienced over the past 18 months.
“Like most other companies, we have seen our employees adapt quickly to working remotely,” said Edward Patterson, a spokesperson for State Street. “We intend to capture and adopt the new ways of working that have arisen during the Covid crisis so that we make the improvements and make adjustments as needed.”
The company will not return to its offices at 1290 Sixth Avenue and 1040 Sixth Avenue, and the latter will be put on the sublet market.
Along with the coworking space in Manhattan, employees will have the opportunity to work from Clifton, New Jersey; Princeton, New Jersey; or Stamford, Connecticut.
However, State Street is still moving forward with a deal that it signed in 2019 to take up 510,000 square feet for its Boston headquarters.
