Raymond James Financial has laid off about 550 workers, or just under 4 percent of its global workforce of 13,900 employees.
The layoffs include some local workers, although the number of those impacted locally is unclear. The financial services firm, one of the largest companies headquartered in St. Petersburg, is not sharing any details about where the impacted associates worked or the types of jobs they held, said Steve Hollister, a spokesman for Raymond James.
Even with the reductions, the company has about the same number of workers as it did in early 2019, with about 5,000 associates in the Tampa Bay area, Hollister said.
Paul Reilly, chairman and CEO, said the jobs were being eliminated as part of overall cost controls. In a memo sent to employees Tuesday afternoon, Reilly called the move “among the most difficult choices I have made.”
Raymond James (NYSE: RJF) has faced financial fallout during the Covid-19 pandemic. The company has had several years of record-breaking growth, but the pandemic and corresponding economic conditions and rate cuts “effectively wiped out half our earnings,” Reilly said in the memo.
Raymond James rarely has made job reductions, and is taking what Reilly called extraordinary steps to take care of workers who are losing their jobs. The company will provide a full year’s bonus for fiscal 2020 and has expanded its severance policy, increasing payment to up to a year of total compensation for its more tenured associates. Workers in the United States who lost their jobs will also receive 12 months of Raymond James-paid medical benefits and professional job placement support, with similar support in other countries.
Reilly, who was the highest-paid CEO among local public companies last year with $13.1 million in total compensation, said he would be taking “a significant cut in pay.” So will the senior leadership team, he said. The company is continuing to identify additional efficiencies, including taking a look at its real estate strategy, but does not plan any more layoffs, according to Reilly’s memo.
The job cuts are not expected to diminish service levels to advisors or their clients, or impair the company’s ability to continue its growth momentum, the memo said.
For the nine months ended June 30, Raymond James reported $609 million in net income, or $4.33 a share, on net revenue of $5.9 billion. Revenue was up 3 percent year over year, but net income declined 21 percent and earnings per share were down 18 percent.
The company is scheduled to announce earnings for the full fiscal year that will end Sept. 30 on Oct. 28.