In a cost-cutting move, Raymond James is eliminating nearly 4% of its global workforce, which now stands at 13,900 worldwide — meaning about 500 positions.
Most of the job cuts affect those in corporate roles across the U.S. and abroad.
“Given the strong infrastructure we have in place, these steps are not expected to diminish service levels to advisors or their clients, or impair our ability to continue our growth momentum,” said Chairman and CEO Paul Reilly in a memo sent to the firm’s employees and obtained by ThinkAdvisor late Tuesday.
Those losing their employment will get a full bonus for the current fiscal year ending Sept. 30 and severance pay of up to a year of total compensation for the “more tenured associates,” Reilly explained. Staff being let go also will get 12 months of paid medical benefits and professional job placement support.
The number of staff at Raymond James’ headquarters and in the Tampa, Florida, region should remain at about 5,000, roughly the 2019 level.
More Remarks From Reilly
“Among the most difficult choices I have made [this year] … is the decision that was shared with affected associates this morning — that we are eliminating their jobs as part of overall cost controls.”
Other firms in the industry have made similar moves.
Wells Fargo, for instance, started job cuts in early August. They could impact tens of thousands of workers, according to a recent Bloomberg report.
Many banks have had to sharply increase their loan-loss provisions during the pandemic, and some also have turned to job cuts to boost their financial situation. Raymond James’ loan loss provisions were $81 million in the quarter ending June 30 and $109 million in the prior period.