Pacific Investment Management Co. cut its workforce by 68 people, or about 3%, and is offering buyouts as assets under management have fallen in recent years, according to a memo obtained by Bloomberg.
'Like any responsible business, Pimco constantly adjusts its resources to capitalize on changing markets and investment opportunities for clients', spokesman Michael Reid said in an e-mailed statement. “Our current business plans will reduce expenses in some areas while, of course, ensuring investment and hiring in others.”
Bloomberg News reports that Pimco’s $1.5 trillion in assets under management are down 25% from a high of $2 trillion in the first quarter of 2013. Bill Gross, who co-founded the firm in 1971 and built Pimco Total Return into the world’s biggest mutual fund at its peak, left abruptly in 2014.
'The competitive demands of this industry require that we continually adapt and innovate to meet evolving client needs', according to the memo signed by top executives. 'Today is a difficult day for all of us at Pimco, but most importantly, for those affected by these decisions. The firm is providing support to those affected and we thank them again for their contributions'.
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