LPL Financial, the largest independent broker/dealer, which has more than 11,500 independent contractor representatives and nearly 3,000 employees, will lay off 10% of those workers, or about 275, according to an 8-K filing it made with the SEC on December 31, 2008. The filing said the staff cuts are meant to reduce “its operating costs as part of a comprehensive strategic business review,” and that all employees were notified of the cuts on December 29, 2008. The company will take a fourth-quarter 2008 charge of approximately $12 million due to “severance and similar personnel-related expenses,” and said it expects to “complete all activities associated with the restructuring” by January 31, 2009.
In the filing, LPL said it is on “a solid footing operationally and financially. Given our longstanding market leadership, we believe it is incumbent on us to position LPL Financial for continued financial resilience by taking certain proactive steps at this time, one of which is a reduction of the company’s total workforce by approximately 10%.”