Raymond James plans to slash its workforce by close to 4%, although none of the planned layoffs include financial advisors, according to news reports.
Given that the firm has around 13,900 employees, the layoffs will affect more than 500 employees, the Tampa Bay Times writes, citing the company. Raymond James has 5,000 workers in Tampa, according to the newspaper.
While a spokesman for Raymond James declined to tell the Tampa Bay Times which units of the company will face job cuts, he says that none of workers getting laid off are financial advisors, according to the newspaper. The firm has around 8,200 financial advisors overseeing $877 billion, the Tampa Bay Times writes.
The cuts are meant to bring Raymond James’ employment levels in line with early 2019, the spokesman also tells the newspaper.
The firm was already looking at “improving efficiencies” prior to the Covid-19 pandemic but didn’t plan for the “corresponding economic conditions and rate cuts that effectively wiped out half our earnings,” Raymond James chairman and CEO Paul Reilly told employees in a memo cited by the Tampa Bay Times.
In its more recent quarterly earnings report, released in late July, the company “hinted” at cutting “both compensation and non-compensation expenses,” the newspaper writes. But Raymond James executives also said this summer that they were weighing other methods of making operations leaner, such as by slashing the firm’s office footprint, according to the Tampa Bay Times.
Those being laid off in the latest round will get a full year’s bonus for this fiscal year and U.S. employees will get 12 months of medical benefits and help with job placement, with those outside the country promised similar assistance, the newspaper writes, citing Reilly’s memo. Reilly also says that the company doesn’t “intend to have another round of job eliminations,” according to the Tampa Bay Times.
In 2019, Raymond James paid Reilly $13.3 million, including bonuses and stock, the newspaper writes, citing disclosures filed with the SEC. In the memo, Reilly says that he and other executives at the firm will take “a significant pay cut,” according to the Tampa Bay Times.
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