Wellington Lays Off Dozens of Employees With Voluntary Job Cuts

News September 30, 2024 at 10:20 AM

Share & Print

Dozens of Wellington Management employees are leaving as part of voluntary job cuts at the Boston-based asset manager.

The firm offered "some long-tenured employees" a chance to leave with severance, and less than 3% of the firm's 3,000 employees agreed to take it, spokesperson Robyn Tice said Wednesday in a statement.

In recent years, active fund managers have been battling outflows and squeezed margins as investors have fled for cheaper passive alternatives. Several firms including those that distribute such passive funds, such as BlackRock Inc. and Fidelity Investments, have trimmed headcount over the past year.

Wellington manages more than $1.1 trillion, mainly from institutional investors such as pensions and endowments. The firm had expanded in recent years, including by opening offices in New York and Needham, Massachusetts in 2023, which together employ more than 300 people.

Last year, Wellington cut 5% of its staff after a strategic business review of investment needs and ways to become more efficient.

The firm said the current program made the layoffs available to a small number of employees across business areas and global locations.

"Eligible employees who have elected to participate in the program have not yet left the firm and are actively engaged in planning for a smooth transition," Tice said in the statement.