is once again slicing back-office jobs in response to declining investor activity. The firm said it is cutting another 222 positions at its operations center in Denver. The jobs represent about 15 percent of the positions at Janus.
This marks the second year running that the Stilwell Financial unit has eliminated positions at the operations center. That it has done so it not a surprise as industry observers note many fund investors are less active in declining markets.
Janus, of course, built much of its sales through direct relationships with investors. The number of new accounts originating through the direct-channel at the firm has fallen sharply though. This reality is acknowledged by Janus executives.
, president of Janus Service, acknowledged the slackening demand in the direct-sales channel in a statement explaining the layoffs. He also pointed to the decrease in inventory at Janus. Nearly half Janus' retail stock funds are now closed to new investors.
Remaining investors are also more likely to use the Web to answer simple questions such as account balances, relieving pressure on the firm's phone reps.
As one of the few fund firms that are owned by a public parent Janus is under an obligation to report layoffs that other firms are not. Observers note that many fund firms are quietly looking at making back-office and phone center cuts now that demand is falling short of forecasts made in the late Nineties.
Stay ahead of the news ... Sign up for our email alerts now