...They say they are positive about the economy (not going into recession), but they act as if it is about it.
...Watch what they do, not what they say. It is in their interest to keep the party going. They will get out before you do.
Fidelity International is planning to cut around 1,000 jobs globally in 2024, equivalent to around 9% of its headcount
07/03/2024
Fidelity International is planning to cut around 1,000 jobs globally in 2024, equivalent to around 9% of its headcount, per Reuters.
Global fund management giant Fidelity International is set to reduce its workforce by about 1,000 employees in 2024, constituting approximately 9% of its total headcount, as outlined in an internal memo obtained by Reuters.
The company, which oversees $776 billion in client assets, stated that these job cuts are part of a larger cost-saving initiative aimed at generating around $125 million in annual savings.
These layoffs come at a challenging time for the broader fund management industry, which has faced difficulties in retaining client funds amidst market volatility and rising interest rates that have driven investors towards lower-risk or passive investment options.
Other fund management firms are also implementing workforce reductions, including BlackRock, the world's largest asset manager, which announced in January its plans to cut approximately 3% of its staff.
The internal memo was signed by Fidelity International president Keith Metters, who was appointed last week to lead the business, succeeding Anne Richards, who announced her departure as CEO in November.
The memo also outlined that Fidelity International would extend timelines for non-core projects and concentrate investment in areas that provide the greatest value to clients.
A spokesperson for Fidelity International confirmed the memo's contents to Reuters, stating, "In this more challenging economic environment, as any other business would, we are taking a sensible approach to evaluating our cost base."
"Our overriding objective will continue to be prioritizing and protecting areas focused on client retention and satisfaction," the statement added.
Fidelity indicated that the job cuts would be distributed across all business segments and geographic regions, as the company operates in over 25 countries.
