Fidelity Insists FAs are Unaffected by Employee Buyouts
Fidelity Investments insists its financial advisors will not be affected by the company’s voluntary offer to buy out thousands of employees, WealthManagement.com writes.
With a view to cutting costs, the firm had offered voluntary buyouts to more than 3,000 mostly long-time workers 55 and older, according to the Boston Globe. It was a first for Fidelity and more than 1,500 employees accepted the offer, surpassing Fidelity’s expectations, a company spokesman tells the paper. It’s not clear whether further buyouts are on the horizon, according to the Globe. Fidelity’s spokesman tells the paper that the company continually evaluates its business needs but also that it has several hundred open positions.
But the current buyout program, at least, doesn’t affect Fidelity’s institutional arm nor services for financial advisors, Adam Banker of Fidelity Brokerage Services tells WealthManagement.com.
“We had a very well thought-out plan for this voluntary buyout, which included time for transitioning work,” Baker tells the web publication. “Fidelity reviewed all applications to ensure critical business needs were addressed.”
The buyouts were offered to 7% of Fidelity’s 45,000-strong workforce, the Globe writes. The company’s spokesman tells the paper the program didn’t aim at any specific region or division. The offer included up to six weeks of severance pay for each year at the firm and extending the company healthcare plan for 18 months past departure at employee rates, according to the Globe.