Putnam cuts work force by 5%
Putnam Investments laid off about 5% of its staff today.
Putnam Investments laid off about 5% of its staff today.
Putnam President and Chief Executive Robert Reynolds said in an interview that the layoffs centered on technology, operations and administrative staffers, some of whom are being let go as part of outsourcing contracts signed before his arrival in July 2008.
“Since we were going through the business planning process we look at other areas,” he said. He added that Putnam ended up cutting a handful of traders and other investment staff. At the same time, Mr. Reynolds said, resources are being redeployed to areas such as retirement services, investments, Web-based tools and marketing.
According to spokesman Jon Goldstein, who spoke to Pensions and Investments, Brad Libby, one of four portfolio managers on the municipal bond team led by Thalia Meehan, will move on. David Gerber, the analyst/portfolio manager overseeing Putnam’s Global Industrials fund, will likewise leave. Two other analyst/portfolio managers – Ferat Ongoren and Nathaniel Salter — will be replacing Mr. Gerber on that fund.
Also departing the firm is Coo Way Law, one of two analyst/portfolio managers overseeing Putnam’s Global Telecommunications fund, will leave. His co-manager, Vivek Gandhi, will become the sole manager of the fund.
Asked if the layoffs were a cost-cutting move, Mr. Goldstein told P&I that they were more a matter of adjustments made as Putnam continues to tweak its business model. Putnam continues to invest heavily in building up its investment organization, he added.
Douglas Appell, a reporter at sister publication Pensions & Investments, contributed to this article.
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