Manning & Napier
is slimming down a bit.
, who serves as co-CEO and executive vice president and managing director of sales, confirmed on Fairport, New York-based Manning's
] Q2 2018 earnings call on Tuesday his taking a number steps "concentrated on expense management."
"To that end, during the second quarter, we rolled out an early retirement offering to employees that met specific age and service metrics," Stamey told analysts on the call, as transcribed by Seeking Alpha
. "Employees that elected to participate in this program confirmed their elections during July, and we are working with each of them on their respective transition plans."
"Additionally, after reviewing current AUM, client accounts, and revenue, we identified several other areas where workforce reductions were necessary and completed that process earlier this month," Stamey added.
Later in the call, Paul Battaglia
, chief financial officer, confirmed that "just under 20 employees of the firm elected to participate" in the early retirement offering. Battaglia provided more details on that offering and the staff cuts.
"Those employees will depart on a staggered schedule to maintain business continuity, with the majority of them transitioning out over the remainder of the year," Battaglia said. "Further, we have identified approximately 20 additional positions for elimination. Some of the changes were completed in July, with the remainder occurring over the next few months."
Manning and Napier had 410 employees as of June 30, so cutting about 40 jobs (between early retirement and eliminating positions) translates into about a ten-percent staff cut for the firm. Battaglia said Manning expects to save about $6 million annually from cutting those 40 positions, though Manning is also expecting about $2.7 million in severance charges in Q3 and Q4.
Also on Tuesday, Manning reported
Q2 economic net income of $0.06 per adjusted share, in line with analysts' expectations, and Q2 revenue of $41.12 million, beating expectations by $680,000. As of June 30, 2018, Manning had $22.8 billion in AUM, down 2.6 percent for the quarter and down 15.7 percent year-over-year.
Neil Anderson, Managing Editor
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