Fidelity to cut 1,700 jobs in 2d round of layoffs

Fidelity Investments yesterday detailed that its second round of planned layoffs will include 1,700 employees in the first quarter of 2009, or 4 percent of its workforce. The Boston-based investment giant let go of 1,300 people on Wednesday. Together, the layoffs will affect 7 percent of the firm's 44,400 employees, or 3,000 jobs, Fidelity said.

Specifics of the latest cuts are still being determined, Fidelity spokeswoman Anne Crowley said. "Individual division leaders have been looking for economies and looking for ways to control costs in light of everything that's happening in the economy," she said. Fidelity employs about 11,500 people in Massachusetts. The company would not say how many people locally could lose their jobs. No fund managers or financial analysts will be affected, Crowley said.

Fidelity president Rodger A. Lawson disclosed the numbers on the second round of layoffs during a breakfast meeting with Fidelity employees yesterday. He was discussing other company business at the meeting, Crowley said, but confirmed the 1,700 figure for the first time.

Fidelity is among many investment firms slashing headcount in the wake of the worst stock market losses in decades. Citigroup Inc. is laying off 10,000 people. Morgan Stanley is planning to lay off 2,000; Goldman Sachs is letting go of 3,200.

Fidelity manages $1.4 trillion in assets, down from $1.6 trillion at the end of 2007. With stocks down 36 percent this year, Fidelity's revenue could drop by $1 billion for 2008, according to an estimate by Eric Kobren, editor of a newsletter for investors in Fidelity funds. The firm reported $14.9 billion in revenues last year.

In a memo to employees last week, Lawson said "difficult times" in the financial markets and the economy have "resulted in a significant negative effect" on Fidelity's revenue.

Beth Healy can be reached at bhealy@globe.com.