Legg Mason has cut about 30 positions, or 3%, at the corporate level to reduce operating costs, spokeswoman Maria Rosati said.
Ms. Rosati issued the following statement via email: “Legg Mason is refocusing its resources in response to the disruption affecting the asset management industry. We looked at our overall business to meet these pressures and to deploy capital toward investments in technology, products and distribution. As such, we further reduced operating costs, which includes a reduction in headcount.”
These layoffs do not affect the firm’s affiliates.
Joseph A. Sullivan, Legg Mason chairman and CEO, had told Pensions & Investments in an interview unrelated to the layoffs on March 7 at his Baltimore office: “Disruptors are coming into the industry. The industry has enjoyed large margins for a while. That’s changing.”
News of this downsizing immediately follows BlackRock’s announcement that there will be roughly three dozen staff reductions because of the firm reorganizing its active equity investment platform and looking to reduce fees.
Legg Mason reported $710.4 billion in assets under management as of Dec. 31.