Fidelity Investments announced today that it has cut 760 employees, about 2% of its workforce. The reductions, from several of the companys business units, are not "across-the-board," but rather were made independently by each unit, according to the firm.
Consequently, the cuts were different for each business units. The largest were in Fidelitys brokerage unit, which cut 382 or about 3.6%, its retirement services cut 94 positions, or about 1%, and its institutional services unit cut 70 positions or about 4.9%, according to a company spokeswoman. No fund managers, analysts or traders were laid off.
Unsurprisingly, the prolonged market downturn was the catalyst for the cuts. "For more than a year now, there has been volatility in the equity markets and the economy has slowed significantly," according to a company statement. "A broad range of industries including financial services has felt the impact of the slowing economy. Many of Fidelitys businesses likewise have been affected."
The employees who were laid off will work through Friday, according to the spokeswoman. Each employee will remain on the company payroll for two months and will receive a bonus as if they had worked the full year. Full outplacement services will be offered for at least two months as well.
Fidelity does not anticipate announcing and further cuts this year, the spokeswoman said.