(Bloomberg) -- Wellington Management is eliminating dozens of jobs just weeks after the firm started a voluntary redundancy program for a group of employees.
Staff were notified in a companywide email Monday that the Boston-based asset manager will now cut about 1.5% of its 3,000 workers, according to a person familiar with the matter. The reductions will be across departments but won’t affect portfolio managers, the person said, asking not to be identified because the matter is private.
“The active management industry and our clients’ needs continue to change meaningfully, and we are investing in our business and aligning our organization,” Wellington spokesperson Robyn Tice said in an emailed statement. “As part of these efforts, we are eliminating a small number of roles.”
Active fund managers have been grappling with outflows and lower margins for years as clients have fled their mutual funds for cheaper passive products. Many firms that manage such passive products, including Fidelity Investments and BlackRock Inc., have also slashed jobs over the past year.
Wellington manages more than $1.1 trillion, mainly from institutional investors such as pensions and endowments. It recently expanded its operations, including by opening offices last year in New York and Needham, Massachusetts, which together employ more than 300 people.
Wellington had already offered some long-tenured employees a chance to leave with severance, Bloomberg reported in September. At the time, the firm said less than 3% of its total staff had agreed to take the exit offer.
Last year, Wellington cut 5% of its staff after a strategic business review of investment needs and ways to become more efficient.
--With assistance from Cameron Baker.
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