By Selena Li and Iain Withers
HONG KONG/LONDON (Reuters) -Fund management giant Fidelity International is planning to cut around 1,000 jobs globally in 2024, equivalent to around 9% of its headcount, according to an internal company memo seen by Reuters.
The London-based firm, which manages around 630 billion pounds ($801 billion) of client assets, said the job cuts were part of a broader cost reduction programme expected to save around $125 million a year.
Fidelity also said it would push out timelines on non-core projects and focus investment in areas that delivered most value to clients.
A Fidelity International spokesperson confirmed the contents of the memo to Reuters.
The cuts come at a bruising time for the wider fund management industry, which has struggled to retain client cash through a period of turbulent markets and higher interest rates that have driven investors into lower-risk or passive alternatives.
Other fund managers are also pursuing cuts, including the world’s largest asset manager BlackRock, which said in January it would cut about 3% of its workforce.
“In this more challenging economic environment, as any other business would, we are taking a sensible approach to evaluating our cost base,” a Fidelity International spokesperson said in a statement.
“Our overriding objective will continue to be prioritising and protecting areas focused on client retention and satisfaction,” the statement added.
The job losses would be spread across all business lines and regions, Fidelity said. The company operates in more than 25 countries.
($1 = 0.7862 pounds)
(Reporting by Selena Li, writing by Iain Withers, editing by Sinead Cruise)
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