As layoffs commence, Commonwealth’s digital guru jumps ship

A year after it was acquired by rival LPL Financial Holdings Inc., Commonwealth Financial Network has seen its digital guru, Christopher Blotto, jump leave the firm.

Blotto was Commonwealth Financial’s chief digital & information officer, and moved this month to Janney Montgomery Scott, according to his profile on LinkedIn.

Meanwhile, Commonwealth Financial has recently told some back office workers that they were losing their jobs, while others were told to look for job openings at LPL Financial. While Blotto’s departure and the layoffs are not related, they are both to be expected after an acquisition of this size and scope.

LPL Financial works with 32,000 financial advisors and Commonwealth Financial had close to 3,000 when the purchase – for $2.7 billion in cash – was closed last August.

“We’ve seen this for decades after an acquisition happens and there’s two set of leadership teams,” said a senior industry executive who spoke privately to InvestmentNews about Blotto leaving Commonwealth. “Once the consolidation starts, management’s loyalty is with the home team, not the one that was bought. And it really doesn’t matter how talented those executives are.”  

Blotto started at Commonwealth Financial in 2023. Based in New York, his title with Janney Montgomery Scott is chief information officer. He did not return a message vial LinkedIn to comment.

An LPL Financial spokesperson wrote in an email: "We thank Chris for his many contributions to Commonwealth and wish him the best in his new role.”

LPL Financial last year hired Vaughn Harvey as executive vice president, chief data and artificial intelligence – AI - officer, but he left the firm last month. 

Before working at LPL, Harvey was managing director and head of product and transformation for consumer and community bank finance at JP Morgan Chase.

LPL Financial has publicly and privately said it intends to hold onto the Commonwealth Financial brand and culture, which was known for its high-touch service to its financial advisors. But as the acquisition continues to progress, the financial advice industry’s attention will be focused on whether LPL is delivering that promise.

LPL Financial recently started the process of cutting an unknown number of Commonwealth Financial back office workers who do not deal directly with financial advisors. 

LPL Financial currently has more than 9,900 employees.

Commonwealth Financial joins a number of firms that have recently cut jobs. The reductions in jobs at large firms are happening in an era when artificial intelligence software is replacing back office jobs and firms are trying to boost profitability.