Fidelity To Cut 1,300 Jobs

Massachusetts stands to lose 300 to 400 jobs this month as Fidelity Investments lays off 3 percent of its workforce.

WBUR's Curt Nickisch reports.

The Boston-based company says it will lay off 1,300 workers around the globe. It also plans another round of layoffs early next year. The reason it's giving: the stock market.

According to Financial Research Corporation, Fidelity's non-money market mutual funds have lost almost a quarter of their value through October of this year. That means the company is making about that much less in fees for managing those funds.

That helps explain the need to cut costs. But to put this month's layoffs in perspective, Fidelity has added more than ten times as many employees over the last five years.