The Financial Planning Association announced January 30 that its board voted to lay off 10 full-time employees to match an anticipated 15% drop in revenue for its fiscal 2009-2010 year, which begins June 1, 2009. In an e-mail message to members, FPA Executive Director/CEO Marv Tuttle said that "anticipating revenue falloff across many traditional revenue sources," the FPA board approved a budget reorganization plan January 19 to cut costs after anticipating there would be a $2.7 million budget deficit in the new fiscal year, or about 15% of its annual operating budget.
The 10-person layoff amounts to a 12% workforce reduction for the FPA.
Tuttle said in the e-mail that the group has already made "modest budget cuts" in the current fiscal year due to a "slight decrease in a few revenue streams." As for membership, Tuttle wrote that FPA has "seen a slight decrease in retention and a slowing of new members coming on board," but that over all, FPA's membership is "only down slightly with total roster at 28,000."
Among the anticipated drops in revenue for the 2009-2010 fiscal year is a 9% drop from conference registrations, a 25% cut related to infrastructure expenses, and a whopping 66% falloff in "overall corporate participation."