Fund management giant Fidelity International is planning to cut around 1,000 jobs globally in 2024, equivalent to around 9 per cent of its head count, according to an internal company memo seen by Reuters.
The company, which manages $776-billion of client assets, said the job cuts were part of a broader cost reduction program expected to save around $125-million a year.
The cuts come at a bruising time for the wider fund management industry, which has struggled to retain client cash through a period of turbulent markets and higher interest rates that have driven investors into lower-risk or passive alternatives.
Other fund managers are also pursuing cuts, including the world’s largest asset manager BlackRock, which said in January it would cut about 3 per cent of its work force.
The memo was signed by Fidelity International president Keith Metters, who was appointed last week to head the business and succeed Anne Richards, who Fidelity announced in November was stepping down as CEO.
The memo also said the fund manager would push out timelines on non-core projects and focus investment in areas that delivered most value to clients.
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 said in a statement.
“Our overriding objective will continue to be prioritizing and protecting areas focused on client retention and satisfaction,” the statement added.
The job losses would be spread across all business lines and regions, Fidelity said. The company operates in more than 25 countries.