Fidelity International, a leading fund management company, is set to trim its global workforce by about 1,000 employees this year, constituting roughly 9 per cent of its workforce.
With assets under management totaling $776 billion, the company announced that the layoffs are part of a wider cost-cutting initiative aimed at saving nearly $125 million annually, as per a report by Reuters.
The cuts come at a challenging time for the wider fund management industry. The sector is already facing difficulties in retaining client funds amid volatile markets and increased interest rates, prompting investors to seek lower-risk or passive investment options.
Other fund management firms are also implementing workforce reductions, such as BlackRock. In January month, the company announced its plan to reduce nearly 3 per cent of its staff.
The details were conveyed in a memo signed by Fidelity International president Keith Metters. Metters, succeeding Anne Richards, who Fidelity announced in November would be stepping down as CEO.
The memo also stated that the fund manager intends to extend deadlines for non-core projects and prioritize investments in areas that offer the highest value to clients.
The company stated that the job reductions would be spread across all business sectors and geographic regions. The company has a presence in over 25 countries.
This news comes at a time when many big companies are going through tough layoffs. From e-commerce to media and finance, every sector seems to be feeling the pinch of job cuts.
