Janus Capital Group
is cutting its workforce by nine percent, company officials said Thursday. The Denver-based firm, which had 1,275 employees as of September 30, expects the headcount reduction to yield $15 million of annualized
savings. Janus will incur a severance charge of approximately $7 million in the fourth quarter.
The job cuts are part of a plan to slash 2009 costs by $40 million to $45 million, executives said.
Janus expects to cut general and administrative expenses by $25 million to $30 million.
Janus on Thursday reported third quarter net income of $26 million, down from $50.8 million a year ago
"In light of the challenging environment, Janus is focused on aligning our expenses with our revenues," Janus CEO Gary Black
the earnings release
. "While we're cutting overall compensation, reducing headcount and scaling back spending, we're also moving forward with our strategic plan."
The cuts will come from "multiple levels of the organization," Janus spokesman James Aber told The MFWire
. The reduction will not affect portfolio managers and analysts, Aber added.
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