T. Rowe Price has laid off 2% of its workforce and reduced other spending as part of “targeted” cost cuts amid a difficult year for the firm and financial markets.
The investment firm didn’t disclose exactly how many people were laid off or where they worked. Based on the 7,990 associates it reported as employed as of Sept. 30 — a 6.% increase from T. Rowe’s year-end 2021 headcount — a 2% reduction could amount to approximately 160 people.
The Baltimore Business Journal reported Wednesday that the company sent a memo informing employees about the downsizing. A company spokesperson forwarded a statement confirming the job cuts.
“This has been an exceedingly challenging year for asset managers, including T. Rowe Price, and the challenges we have faced are likely to intensify,” the statement says. “To address current market conditions and protect our ability to invest for future growth, we made targeted expense reductions across the enterprise, including further reducing our third-party spending and eliminating roles, with approximately 2% of our associate population departing the firm.”
The statement goes on to say, “We deeply value the dedication and the contributions of our departing associates and offered generous transition assistance packages, as well as outplacement support and resources in recognition of these associates’ many contributions to our firm.”
T. Rowe’s decision follows a third quarter in which investors took $24.6 billion from the firm’s funds, the Business Journal noted.
Several other financial firms have announced job cuts in recent weeks and months.