Salary, Job Cuts Increase as Asset Managers Pare Expenses
The Wall Street Journal reports that PIMCO is among asset managers warning employees that their pay could remain flat as 2018 comes to a close. According to the report, increasing competition and consolidation have led firms to make workforce adjustments. Oppenheimer Funds and Invesco Ltd. are expected to cut about 1,000 jobs after they merge in 2019, and Invesco plans $475 million cost cuts over the next two years, the WSJ reported. T. Rowe Price is planning to close an operations center in Tampa, and BlackRock is scrutinizing costs, the WSJ reported. The report quoted consultants who said only 30% of asset managers were able to expand assets, increase revenue faster than costs and invest in themselves between 2014 and 2017.