Fidelity Investments, the world’s largest mutual fund company, will lay off 1,300 employees, or 3% of its work force this month. It will also conduct a second round of job cuts in the first quarter of 2009 that is anticipated to impact another 1,700 employees.
As reported by Jennifer Levitz in The Wall Street Journal, Fidelity has 44,400 employees and $1.24 trillion in mutual fund assets under management. It is likely that the entire fund industry will contract in the coming months because of a diminished asset base, just as it grew during the recent bull market. Fidelity, for example, now has 15,000 more employees than it did five years ago.
The November layoff will affect “layers of management” and lower level employees, spread out over several Fidelity units and in most regions, according to spokeswoman Anne Crowley. According to Ms. Crowley, Fidelity will keep the employees on the payroll through December, and it will provide a “generous severance package” and job-hunting services. Fidelity says that it will not be laying off fund managers or investment analysts.
As we approach the holiday season, the job outlook in the securities industry seems to grow bleaker each day. Once again, we believe that it is crucial for employees of financial firms to consult with experienced counsel if they believe that a layoff is in their future.
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. The firm also has an active practice in representing individuals in employment disputes with brokerage firms. The firm is currently involved in representing several brokers in such disputes. For further information, please contact www.pageperry.com.