he effects of the recession are being felt everywhere. The latest company to reassess its position is T. Rowe Price
. The firm is reducing 5% of its U.S. workforce, a spokesperson at T. Rowe Price told the MutualFundWire.com. There are 3,600 associates.
Though the cuts are across the board, the area to be hardest hit is the phone and technology groups. The firm reports that volume for this unit has been slowing, and there are a reduced number of projects.
Some of the firm's associates will be moved to other areas of the company in which they might qualify. T. Rowe Price has experienced a 27% drop in net income for the third quarter compared to the same period in 2000.
"Reducing staff levels was a very difficult decision and one that was not taken quickly or lightly within our organization," stated George Roche
, chairman. The firm does not believe that it will not have to make as severe cuts as some other firms because it did not expand at such a rapid pace during the recent bull market. The firm also contends that service to mutual fund investors will not be affected.
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