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Rating:Lawson: Tough Times Yielded a 'Significant Negative Effect' on Fidelity's Revenue Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, November 07, 2008

Lawson: Tough Times Yielded a 'Significant Negative Effect' on Fidelity's Revenue

by: Armie Margaret Lee

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 Thursday (see The MFWire, 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 reported.

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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