October 28, 2008 / 12:51 PM / 11 years ago

Fidelity reviewing costs amid talk of big layoffs

BOSTON, Oct 28 (Reuters) - Fidelity Investments said on Tuesday it was reviewing its costs and staffing as speculation swirled that the world’s biggest mutual fund company may make steep job cuts in response to the worsening financial crisis.

Mutual fund newsletter Ignites said on Monday that Fidelity was preparing to cut as many as 4,000 jobs, or about 9 percent of its workforce, in two rounds starting this quarter.

Anne Crowley, a spokeswoman at privately owned Fidelity, called the Ignites report “speculation.”

“Our business leaders are currently evaluating all of their operations — company by company, division by division — to make sure they are correctly positioned for the future,” Crowley said in an email.

“Naturally, those reviews include an examination of all of our expenditures, as well as staffing, to determine if they are appropriately aligned for our business needs,” she added.

Fidelity, which employs 44,500 people worldwide in its investment management, brokerage, retirement services, benefits-administration and other smaller businesses, already has cut about 1,000 jobs in three rounds over the past year. Those jobs were not cut from its main money management business.

U.S. money managers have announced big layoffs recently as assets under management have slumped due to the meltdown in markets.

Janus Capital Group JNS.N last week said it was slashing about 115 jobs, or 9 percent of its workforce, and AllianceBernstein Holding (AB.N) said it would make an unspecified number of cuts, the biggest in its 40-year history. (Reporting by Muralikumar Anantharaman; editing by John Wallace)

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