The Friday edition of The Wall Street Journal
and The Boston Globe
contained additional details on the planned cuts
at Fidelity, which the Boston Behemoth announced
November 6, 2008).
The job cuts will not affect fund managers and investment
analysts. Fidelity also plans to "maintain resources" in
customer-services divisions, such as call centers, The Journal
The Globe went a step further, quoting from a memo that Fidelity president Rodger Lawson
sent to employees
on Thursday. In it, Lawson said that "difficult times" in the markets
and the economy have "resulted in a significant negative
effect" on Fidelity's revenue.
"Reluctantly, this has led me to conclude that many of the cost improvement plans which would have been phased in by our business units over the next three years need to be accelerated," Lawson wrote.
"At times like this it is critical to maintain the strong financial status of the company while also ensuring we continue to provide our clients with the best products and services available in the industry," he added.
One of the focus of the layoffs will be company managers, Lawson said. "This simplification of our organization also will help us address the speed-to-market concerns which have been a major focus for us all," he said.
Last week, reports surfaced that Fidelity planned to cut a total of 4,000
jobs in two phases. Fidelity spokeswoman Anne Crowley told The Globe
that the two-part headcount reduction will result in fewer than 4,000 layoffs.
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