LPL Financial eliminates 10% of work force

Industry observers have questioned in which areas the cuts have been made, but a spokesman, Joe Kuo, said the company has no comment beyond a statement, which included no specifics about the layoffs.

LPL Financial of Boston said it has cut 10% of its work force, or 275 employees.

In a filing with the Securities and Exchange Commission on Dec. 29, LPL indicated that it was taking action to cut operating costs, including the layoffs.

Industry observers have questioned in which areas the cuts have been made, but a spokesman, Joe Kuo, said the company has no comment beyond a statement, which included no specifics about the layoffs.

“The firm is on solid footing operationally and financially,” the statement said.

This round of mass layoffs is the first in the history of LPL, which has more than 11,000 affiliated reps and advisers in its network.

LPL has a handful of broker-dealer subsidiaries, and it has expanded across the country.

Before the layoffs, the company had been on an acquisition binge: In 2007, it bought four broker-dealers with 2,900 affiliated reps and advisers.

LPL is the largest independent-contractor broker-dealer in the industry.

The firm said it expects to take a $12 million restructuring charge in the fourth quarter of 2008 as a result of the cost-cutting moves in the SEC filing,

It made no mention, however, of specific potential cost savings from the layoffs and other measures.