BOSTON Feb 27 Fidelity Investments plans to
offer voluntary buyouts to employees who are 55 years or older,
and who have worked for the Boston-based fund firm at least 10
years, a company executive said on Monday.
The buyout offers came as Fidelity, known for its actively
managed mutual funds, faces strong competition from low-cost
index funds and other products.
The executive, speaking on condition of anonymity because
the news has not been fully announced internally, said the
offers will include extended healthcare coverage and what the
executive described as "generous" financial packages based on
the worker's years of service and role.
Closely held Fidelity has about 45,000 employees, a number
that has held steady in recent years, this person said. The
buyout packages appear to be the first time Fidelity has made
such a broad offer, the executive said.
With offices around the United States, it is not unusual for
Fidelity to lay off or add staff. For instance it recently
described plans to lay off 100 employees who work near Dallas,
while adding 135 new workers in Albuquerque, New Mexico,
according to local news reports.
Fidelity on Feb. 16 reported its financial services
operating profit rose nearly 20 percent to $3.5 billion for
2016, despite big withdrawals by investors from the company's
well-known actively managed funds.
(Reporting by Ross Kerber; Editing by Jonathan Oatis)