is eliminating 15 wholesaler posts, or 27 percent of its wholesaling team, a source familiar with the situation told The MFWire
The reorganization within RiverSource's sales force comes on the heels of an unspecified number of cuts last week that primarily affected marketing and product development employees (see
Company spokesman Charlie Keller confirmed the layoffs. "While decisions like these are always regrettable and difficult, this reorganization is necessary to improve operational efficiencies within our wholesaling efforts," Keller said.
Employees were notified earlier this week of the reorganization. The process is expected to be completed in two weeks. By then, RiverSource Distributors, led by
vice president and national sales manager Jeff McGregor
, will be down to
RiverSource, a subsidiary of Ameriprise Financial
, has had one set of wholesalers calling on
Ameriprise advisors and a separate set calling on advisors outside the Ameriprise umbrella.
Under the new system, wholesalers will be covering advisors both in and outside the Ameriprise fold within their territories.
At the end of February, RiverSource's mutual fund AUM totaled $33.54 billion, according to Mercatus' Financial Research Corp
. RiverSource ended 2008 with AUM of $38.03 billion, down from $61.34 billion at the end of 2007.
The reorganization comes five months after Ameriprise completed its $440 million all-cash acquisition of Seligman
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