Introduction
Fidelity Investments, one of the world’s largest asset managers with over 74,000 employees, and its affiliate Fidelity International, which oversees $776 billion in assets, each announced significant workforce reductions in early 2024. These cuts mark a departure from years of hiring growth and underscore challenges facing active fund managers amid turbulent markets. Below, find a detailed timeline, analysis of underlying causes, regional breakdowns, industry context, and practical next steps for impacted employees.
Timeline of Major Fidelity Layoffs
2008: Boston Consolidation
Fidelity Investments eliminated about 250 jobs at its Boston headquarters to address “duplication and redundancies” under new leadership at the time.
2018: Benefit-Abuse Terminations
A Wall Street Journal investigation revealed Fidelity let go or accepted resignations from more than 200 employees for misusing computer-and-fitness reimbursement programs across U.S. offices.
March 2024: 700 Jobs at Fidelity Investments
On March 7, 2024, Fidelity Investments notified fewer than 1% of its U.S. workforce—about 700 staff—that their last day would be March 31, marking its first reduction since 2017.
March 2024: 1,000 Cuts at Fidelity International
In a separate memo, Fidelity International’s newly appointed president Keith Metters outlined plans to cut roughly 1,000 jobs (≈9% of its global headcount) to save $125 million annually and re-invest in client-facing and tech roles.
March 2024: 16% Reduction in China Fund Unit
As part of the same cost-saving initiative, around 20 positions (≈16% of the local team) in Fidelity International’s China fund unit were slated for cuts amid local market pressures.
Root Causes of the 2024 Layoffs
Fee Compression & Passive Shift
The rise of low-cost passive funds has eroded active managers’ profit margins, forcing firms like Fidelity to streamline operations.
Market Volatility & Interest Rates
Turbulent markets and higher interest rates have dampened trading volumes and fee income, making cost control critical for sustained profitability.
Strategic Refocusing
Both Fidelity entities are reallocating resources toward digital platforms, ESG investing, and client-facing roles—areas seen as high-growth—while trimming back-office and non-core functions.
Automation & Technology Investments
Ongoing investments in AI-driven advice systems and back-office automation often lead to redundancy in manual roles over time.
Regional & Business-Unit Impacts
U.S. Operations (Fidelity Investments)
– 700 roles cut across multiple business units, affecting less than 1% of ~74,000 employees.
– Still hiring ~2,000 specialists in client-facing and tech areas despite reductions, illustrating a shift in skill priorities.
Global Footprint (Fidelity International)
– 1,000 global layoffs (~9% of staff) to save $125 million, reallocating budgets to high-value projects.
– China fund unit to shed ~20 positions (16% of team) amid local market headwinds and regulatory challenges.
Industry Context
Fidelity’s moves mirror a broader trend in 2024 within asset management and finance:
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BlackRock cut ~3% of its global staff in January, citing similar margin pressure.
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Abrdn announced 500 job cuts to combat fee erosion and underperforming markets.
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UBS and Morgan Stanley have also trimmed China-focused roles, underscoring the region’s uneven recovery.
What to Do If You’re Affected
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Review Severance & Benefits: Confirm notice periods and any enhanced packages under U.S. or local labor laws.
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Leverage Outplacement Services: Use Fidelity’s career coaching and job-search tools if offered.
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Upskill for In-Demand Roles: Pursue certifications in data analytics, ESG, or fintech platforms to strengthen your marketability.
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Network Proactively: Engage with former colleagues on LinkedIn and forums like r/fidelityinvestments to uncover early job leads.
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Monitor Industry Layoff Trackers: Sites like TheLayoff.com and Bloomberg’s layoff trackers provide real-time updates on sector cuts.
FAQs
Q: Are more Fidelity layoffs expected in 2025?
No official guidance exists yet; watch quarterly earnings calls for signals on future headcount plans.
Q: How do Fidelity Investments and Fidelity International layoffs differ?
Fidelity Investments (Boston-based) cut 700 U.S. jobs, while Fidelity International (London/Hong Kong-based) is trimming ~1,000 global positions under a separate cost-savings program.
Conclusion
Fidelity’s 2024 layoffs—700 positions in the U.S. and 1,000 globally—reflect a strategic pivot amid fee pressure, market volatility, and technological transformation. While painful for those affected, these measures aim to position both firms for long-term competitiveness by focusing on growth areas. If you’re impacted, take proactive steps: review your package, upskill, and network to navigate this transition successfully.