Capital Research and Management Co. will lay off 820 people over the next two weeks, according to an internal memo the parent company of American Funds and Capital Guardian Trust sent to all employees on Monday.
The reductions are being made across all companies and departments among the firm’s 9,000 employees, said Chuck Freadhoff, spokesman for American Funds. "We are meeting with each person individually to go over the severance package," he said.
No investment positions — including portfolio managers or analysts — are being eliminated, Mr. Freadhoff said. "We are still interviewing and recruiting in that area," he said.
In March, employees were told to expect layoffs due to the depressed market and decline in assets, although the number of jobs was not specified at that time. As of March 31, Capital Research and Management had $850 billion in assets under management, down from $1.2 trillion as of January 2008.
American Funds laid off 60 employees last fall and another 500 in January. The firm also eliminated merit increases this year and asked management to cut back on expenses.
American Funds and Capital Guardian Trust are based in Los Angeles.
Sue Asci is a reporter at InvestmentNews, a sister publication of Pensions & Investments
