Published stories in the past week have speculated that Fidelity Investments is readying layoffs to be announced after September 11. Fidelity spokespeople have played coy, hinting that the speculation is unfounded, but at the same time leaving openings in their language that imply something may be happening.

Yesterday something did, but that something is not what people were talking about.

Fidelity cut roughly 150 jobs of workers in its Canadian unit. Fidelity employs about 900 workers in Toronto, where the cuts are taking place. The cuts hit employees of Fidelity Intermediary Services Co., which is being closed. Those affected are able to seek jobs in other Fidelity units, but they have no guarantees.

That unit supports the financial advisor channel in Canada and was just formed in July 2000 to serve as a back-office for advisors selling funds. Not surprisingly, the unit has failed to attract the business that was expected when it was being created at the height of the Nasdaq mania.

"Frankly, the market's too small right now and getting smaller," said a spokesperson for Fidelity Investments Canada. "We're disappointed that we're not going to achieve the scale we need."  

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