MutualFundWire.com: Invesco Will Cut 850 OpFunds Jobs In One Location

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Friday, March 22, 2019

Invesco Will Cut 850 OpFunds Jobs In One Location

At least one of OppenheimerFunds' [profile] locations is facing big job cuts once the Invesco [profile] deal closes next quarter.

Martin L. Flanagan
Invesco
President and CEO

Over 18 months, the Invesco management team expects to eliminate 850 positions from its Denver area office in Centennial, Colorado, according to a notification that Invesco HR chief Washington Dender is sending to Centennial Mayor Stephanie Piko. The cuts are expected to begin on May 25, so it's a good bet that that's the target close date for the deal.

OpFunds spokeswoman Kimberly Weinrick declined to comment and referred inquiries to Invesco.

"The job eliminations are unfortunate but are an important part of our plans to meet the cost synergy target as we work toward a successful close of the transaction," Invesco spokeswoman Jeaneen Terrio tells MFWire.

Denver is a big location for OpFunds. The New York City-based mutual fund firm had more than 2,000 employees when the impending acquisition by Invesco was unveiled last October; nearly 1,000 of those employees, MFWire has learned, are in Denver. So the Denver cuts will amount to 85 percent of the OpFunds jobs there and more than 40 percent of OpFunds' total workforce. (Atlanta-based Invesco had more than 7,000 employees when the deal was revealed.)

The office includes OpFunds' transfer agency operations, as well as service staff and some investment teams. Word is that the cuts will come only from the TA and service teams, as Invesco is not making any cuts to OpFunds' investment teams. Invesco has its own TA teams in Houston and Prince Edward Island, though the firm no longer has a presence in Denver.

According to Dender's letter to Piko, OpFunds will give between three months and one year of severance pay to employees whose jobs are cut. Those affected will also receive "outplacement assistance" from Invesco and a cash stipend to help pay for COBRA health insurance.

More Invesco or OpFunds cuts could be in the works, too, even in senior management. Last month word leaked that OpFunds' CEO will leave once the deal closes.

Printed from: MFWire.com/story.asp?s=59480

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