Fidelity Investments has eliminated 1% of its 45,000-person workforce, according to a source familiar with the matter.
Adam Banker, a spokesman for the Boston-based firm, responded in an e-mailed statement to Bloomberg that the company doesn’t comment about hiring or reductions.
"From time to time, our individual businesses may be making adjustments to their staffing levels; some may be adding employees while others may be reducing," Banker said in the statement. "We currently have hundreds of open positions that we are recruiting for nationwide."
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The move comes after Vanguard, State Street and BlackRock lowered expense ratios.
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The move comes as a surprise; "active search" for a replacement underway.
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"There is an effort underway in our industry to redefine value," Tim Hockey, TD Ameritrade's chief executive officer, said about the lower commissions.
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Fidelity, a company that made its reputation picking stocks, has been trying to adjust to the wave of investors opting for low-cost index and ETFs over actively managed mutual funds.
Last month Fidelity said that more than 1,500 of its employees opted to take a buyout offer that was announced in February. The offer, which included salary and health-care benefits, was extended to 3,000 employees who were more than 55-years-old and had been with the company more than 10 years. At the time, Fidelity said it made the move to reduce costs and open opportunities for newer staff. — Additional reporting by Andrew Shilling
