Baltimore, Maryland-based Legg Mason, a global asset management and financial advisory firm has announced the layoff of 120 employees in Baltimore, Maryland, New York City, New York, and Stamford, Connecticut as part of a cost containment effort. The layoffs include positions in legal, finance, human resources. product support and fund administration distribution operations. Four senior executives will also depart.
CEO Joseph Sullivan noted, “the reductions reflect a need in an evolving industry to “rethink how we deliver on our mission of investing. Going forward, we will continue to challenge ourselves to be more efficient and effective, through innovation. We will continue to collaborate in new and different ways, and we will continue to allocate resources to those areas that will enable us to differentiate ourselves in the eyes of our clients. Throughout our history, Legg Mason has adapted to confront tough challenges. As part of our strategic restructuring, the steps we take today will position the company to succeed over the long-term--for our clients, our shareholders, our employees and our communities.” YADA, YADA, YADA.
Not so coincidentally, we see the notorious activist investor activist investor Nelson Peltz, the CEO of Trian Fund Management, and Trian’s Chief Investment Officer joining the Board of Directors. Peltz, a legendary corporate raider, is renown for his demands for restructuring of managements, divestiture of under-performing assets, strict cost controls including significant reductions in force, stock buybacks, strategic acquisitions, and increased dividends to investors.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?