June 5, 2008 / 10:25 PM / 12 years ago

UPDATE 1-Fidelity Investments says cuts another 550 jobs

(Adds details on job cuts)

By Muralikumar Anantharaman

BOSTON, June 5 (Reuters) - Fidelity Investments, the world’s biggest mutual fund company, said on Thursday it slashed 550 noninvestment management jobs this week, marking the third round of layoffs in eight months under a new president.

The cuts represent about 1.2 percent of its work force and mostly were in two units — a division that operates retirement savings plans and another that provides human resources services, Fidelity spokeswoman Anne Crowley said.

Privately owned Fidelity cut about 250 jobs at the end of January and about 200 in November. Besides the main investment management business, which has been spared layoffs, it has brokerage, retirement service and benefits-administration operations.

President Rodger Lawson, who rejoined Fidelity in mid-2007, initiated a major reorganization of its business, focusing on costs. Crowley said the latest layoffs are a result of the reorganization.

But Fidelity is still hiring, Crowley said.

“We have 4,000 more people than we had a year ago. We are continuing to hire, and we have several hundred open requisitions throughout the company for which we are continuing to hire,” Crowley said.

Boston-based Fidelity manages $1.5 trillion in assets. (Reporting by Muralikumar Anantharaman, editing by Phil Berlowitz/Jeffrey Benkoe)

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