Fidelity’s net profits fell only 4% last year, and they may be weak again this year, despite cost-cutting measures and laying off 3,000 workers, Fidelity President Rodger Lawson warned employees in a recent memo. As a result, the company may scale back on year-end bonuses and merit pay for those in the middle and lower earnings brackets.

Income may be “somewhat lower,” Lawson wrote. Last year, Fidelity’s revenue fell 4% to $12.9 billion, and assets under management fell 22%.

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