Raymond James Financial Inc. said Tuesday it was cutting 500 jobs, spelling layoffs for 4% of its workforce, in order to control costs during the pandemic.
No financial advisers are reportedly part of the job cuts. The company, which has 13,900 employees, began telling its workers of the decision on Tuesday.
While other industries like travel and dining have seen wholesale layoffs during the COVID-19 pandemic and the attendant economic falloff, the broad financial services industry has been fairly robust, benefiting from a stock market that rebounded sharply after it fell 35% in March. Raymond James for several years has seen increases in profitability as well as consistently strong recruiting.
The reason was to control costs, said CEO Paul Reilly, in an email to employees.
"This has been a year like no other," according to Reilly's email. "A year when we’ve all had to make hard decisions, decisions where none of the available options are the ones we would usually choose."
"Among the most difficult choices I have made, along with the other members of the executive and operating committees, is the decision that was shared with affected associates this morning — that we are eliminating their jobs as part of overall cost controls," Reilly noted.
He added that senior executives including himself would take pay cuts and that the company did not intend another round of job cuts.
The large majority of positions eliminated were corporate roles and cuts were limited in adviser and client support areas to avoid impacting service levels, spokesperson Steve Hollister said in an email. The reductions in jobs brings the company back to 2019 levels of employment, he added.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
