Details of LPL Financial LLC's plan to outsource workers have emerged as the firm this month told California officials it planned to lay off up to 130 employees in San Diego and move their jobs out of the company.
LPL told the state of its plans in an Aug. 16 layoff notice, according to a report from the San Diego Union Tribune. An initial 31 workers are likely to be let go by mid-October, including risk management analysts, dividends operations specialists and senior accountants, according to the report. Other workers would be laid off through February.
With 3,000 employees, the layoffs and outsourcing affect a little more than four percent of the company's fulltime workers. (See: LPL plans 3Q job cuts, move to outsourcing.
LPL's major partner in the outsourcing effort is Accenture, an outsourcing company that has 266,000 employees and operations in 54 countries, including India and The Philippines.
LPL expects $20 million next year in savings and roughly $30 million total in 2015.
“We still anticipate growing in other areas of the business, so although much of this savings will come from transitioning responsibilities to outsourcing relationships, our head count will grow in our core areas as the business grows,” LPL spokeswoman Betsy Weinberger said. “There will be no outsourcing of customer-facing functions, and currently we have approximately 200 job openings in our company at our three locations, San Diego, Boston and Charlotte, N.C.”