The downturn in the demand for financial services is claiming still more jobs. Lincoln Financial Distributors (LFD) is letting go 66 of its more than 300 internal, external wholesalers and sales support staff as a part of a reorganization. The cuts come as the firm is eliminating two of its four channel managers. LFD distributes Delaware Investments mutual funds and Lincoln Life insurance and annuity products.

Greg Zabel, who headed LFD's marketing, general agents channel has left the firm, confirmed a spokesperson. Long-time Lincoln veteran Philip Holstein is seeking another position within Lincoln after stepping aside as head of the financial institutions channel.

Although LFD will retain all four distribution channels, it will retain just two channel managers. Steve Long, senior vice president and managing director, will oversee the financial institutions channel as well as the wirehouse regional channel for which he currently has responsibility. The marketing general agents channel was folded into the independent planners and insurance channel headed by Margaret "Meg" Skinner, managing director.

The changes will also eliminate 31 wholesaler positions and 35 non-wholesalers. The latter figures include sales managers and support people. After the cuts LFD will still employ 245 inside and outside wholesalers and support staff. That figure does not include managers.

The reorganization is a response to economic conditions, not the September 11 attacks, said a spokesperson. "September 11 had very little to do with this, except to convince senior management that the economy was not quickly coming back," said the spokesperson.

The layoffs reflected the elimination of overlap in the firm's business segments. For remaining sales staff it will mean a little bit bigger territories and a few more people to call on, said the spokesperson.

Even with the reorganization, LFD is also hiring wholesalers in areas where it currently lacks a presence. The spokesperson did not provide a specific number of openings or the specific regions. He added that there will not be a tremendous number of hirings.  

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