The layoffs come as declining markets have eroded mutual fund assets along with the fees Fidelity earns.
Layoff notices will go out later this month to about 2.9% of Fidelity’s overall workforce of 44,400, the Associated Press reports. Fidelity spokesperson Anne Crowley told the AP the first round of cuts will be roughly proportionate at Fidelity’s locations in Massachusetts, Florida, Kentucky, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Texas, and Utah.
A second round of layoffs is planned in the first three months of next year. Crowley said both rounds will cumulatively affect fewer than 4,000 jobs—contradicting a recently rumored figure (see Fidelity Reviews Costs, Staffing).