Cetera Financial Group has "made a small workforce reduction" across the organization, a spokesperson confirmed to ThinkAdvisor.
The job cuts are intended “to align resources and streamline operations,” said the spokesperson, who would not confirm the number or timing of layoffs. “There was minimal impact on field-facing employees and no impact on the regional growth teams that support our financial advisors and institutions.”
The spokesperson said that Cetera “remains financially strong, continues to grow, and is focused on supporting [its] advisors and institutions with the technology, expertise, and service they rely on.”
“As we continue growing,” they added, “it’s essential that we adjust our organization to help ensure Cetera operates efficiently and is well-positioned for long-term success."
The layoffs were first reported late last week by InvestmentNews. The story cited an unnamed industry source who believes the layoffs are likely to involve marketing, recruiting and cold-calling staff who previously targeted financial advisors working at Avantax.
The spokesperson neither confirmed nor denied that reporting in their statement to ThinkAdvisor, but Cetera purchased Avantax more than two years ago in an all-cash transaction for $1.2 billion and installed its former CEO Todd Mackay as the president of Cetera Wealth Management. The move, executives explained at the time, expanded Cetera’s tax-management expertise while adding Fidelity as a new custodial partner.
About a month later, the firm announced Genstar Capital would make a significant reinvestment in its business. The private equity firm, which is Cetera's majority investor, acquired its first stake in the independent broker-dealer group in 2018.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.