Fidelity International to cut 1,000 jobs globally, memo shows

FUND administration big Fidelity International is planning to chop round 1,000 jobs globally in 2024, equal to round 9 per cent of its headcount, in response to an inside firm memo seen by Reuters.

The firm, which manages US$776 billion of shopper property, stated the job cuts had been a part of a broader value discount programme anticipated to save lots of round US$125 million a 12 months.

The cuts come at a bruising time for the broader fund administration business, which has struggled to retain shopper money by way of a interval of turbulent markets and better rates of interest which have pushed buyers into lower-risk or passive alternate options.

Other fund managers are additionally pursuing cuts, together with the world’s largest asset supervisor BlackRock, which stated in January it could minimize about 3 per cent of its workforce.

The memo was signed by Fidelity International president Keith Metters, who was appointed final week to move the enterprise and succeed Anne Richards, who Fidelity introduced in November was stepping down as CEO.

The memo additionally stated the fund supervisor would push out timelines on non-core tasks and focus funding in areas that delivered most worth to shoppers.

A Fidelity International spokesperson confirmed the contents of the memo to Reuters.

“In this more challenging economic environment, as any other business would, we are taking a sensible approach to evaluating our cost base,” the Fidelity International spokesperson stated in an announcement.

“Our overriding objective will continue to be prioritising and protecting areas focused on client retention and satisfaction,” the assertion added.

The job losses could be unfold throughout all enterprise traces and areas, Fidelity stated. The firm operates in additional than 25 international locations. REUTERS