US-based Fidelity Investments fires 700 employees in first cut in 7 years

Fidelity Investments has announced a significant decision to reduce its workforce by approximately 700 positions. The move marks the company's first reduction in staff since 2017, affecting less than 1% of its employees. 

With a workforce of about 74,000 at the end of the previous year, this decision underscores a strategic shift within the organization.

A spokesperson from Fidelity emphasized, "While difficult, this decision better positions us for the evolving needs of our customers, even during times of growth, and ensuring we remain competitive for years to come."

Leadership and management changes

In addition to the job cuts, Fidelity has recently undergone a reshuffling of its senior management team. Abigail Johnson, the Chief Executive Officer, appointed Maggie Serravalli as the new Chief Administrative Officer and promoted Kevin Barry to take over as the Finance Chief. These changes are part of Fidelity's broader strategy to adapt to the changing financial landscape and meet the growing demands of its clientele.

Despite the reduction in workforce, Fidelity continues to demonstrate strong financial health and growth. The firm boasts $12.6 trillion of assets under administration and is actively seeking to fill nearly 2,000 positions in critical business areas. 

Fidelity International, a separate entity spun off from Fidelity Investments in 1980, has also announced its plan to reduce its global workforce by about 1,000 jobs this year.