AllianceBernstein Holding reported total assets under management of $646.4 billion as of Dec. 31, 2022, a 17% decline from the year-ago date, causing the investment manager to lay off approximately 4% of its staff.
"We enter 2023 with an AUM base 17% below the prior year period, necessitating global cost reduction measures, including headcount reduction," Seth P. Bernstein, president and CEO, said in a Wednesday release.
In an earnings call with analysts on Thursday morning, Mr. Bernstein said: "We recently took measures to reduce headcount that affected a small portion of our global employee base."
Kate Burke, chief operating officer and chief financial officer, elaborated in the call: "We have taken proactive actions impacting headcount across our global businesses, which will impact approximately 4% of our global employee base."
As of Dec. 31, 2022, AB had 4,436 employees, the release said; 4% of its staff would represent about 175 people. The firm had 4,118 employees as of Dec. 31, 2021, the release noted.
Total net outflows amounted to $1.9 billion in the fourth quarter, compared with net outflows of $10.5 billion in the third quarter, and net inflows of $7.4 billion in the year-ago quarter.
Institutional channels witnessed net inflows of $1.7 billion in the fourth quarter, versus net outflows of $6.3 billion in the third quarter, and net inflows of $400 million in the year-ago quarter.
Retail channels reported net outflows of $3.4 billion in the fourth quarter, versus net outflows of $5 billion in the third quarter, and net inflows of $6.3 billion in the year-ago quarter.
Private wealth channels posted net outflows $200 million in the fourth quarter, compared with net inflows of $800 million in the third quarter, and net inflows of $700 million in the year-ago quarter.
By asset class, equity and fixed-income products saw net outflows of $4.9 billion and $5.4 billion in the fourth quarter, while alternatives/multi-asset solution posted net inflows of $8.4 billion.
