LPL Financial Holdings Inc. is the latest financial advice company to lay off employees in an era when artificial intelligence software is replacing back office jobs, with the firm cutting about 3% of its 10,100 person workforce.
LPL Financial is the largest broker-dealer in the industry by headcount, working with more than 30,000 financial advisors. As usual, financial advisors, who generate revenue, were not laid off.
“Following a firm‑wide review, we identified opportunities to streamline our business across all areas,” an LPL spokesperson wrote in an email. “Though difficult, these actions ensure we focus our investments where they have the greatest impact for our business and clients.”
“These changes affect about three percent of the firm,” the spokesperson wrote. “We also continue to grow in priority areas, with more than 300 open positions.”
The development of AI is bad news for the lower paid and salaried employees of financial advice businesses.
Chatbots and the like are replacing the labor of back office workers who oversee the transfer of accounts from one firm to another when a firm recruits an advisor; it’s replacing the tedious task of filling out forms when clients buy specific products like annuities, still the bread and butter for many large broker-dealers.
LPL Financial is the latest firm to announce job cutbacks.
Cetera Financial Group in September announced a second round of job cuts for the calendar year of 2025 after it reduced its workforce by 5% earlier in the year.
Edward Jones in August announced job cuts, laying off 259 home office associates in the United States and Canada.
Those layoffs were on top of 552 home office associates earlier this year that chose to accept a voluntary separation plan, commonly known as a buyout, according to the company.
In total, this impacted less than 2% of Edward Jones' total full- and part-time workforce. No financial advisors or branch office team workers were laid off, according to the company.
This story was updated to reflect that no LPL financial advisors were involved in the company's recent layoffs.
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