US-based financial services company Fidelity Investments has eliminated 500 positions in India. According to a Moneycontrol report, the decision comes as a part of a global realignment strategy by the company. Job roles within the company’s Fidelity Workplace Investing division will be largely impacted with this move, the MC report further stated. Fidelity Workplace Investing provides retirement and employee benefits services to corporate clients.
The company clarified that the layoffs are part of a broader effort to rebalance its workforce across various global locations. An official spokesperson told Moneycontrol, “Fidelity is continuously evolving its ways of working and footprint to support business priorities. From time to time, our individual businesses may adjust staffing levels.”
“We are still hiring talent in various regions, including India, to ensure we continue to provide the best products and services for our customers,” the spokesperson added.
Fidelity operates Global Capability Centers (GCCs) in Bengaluru and Chennai with a workforce of nearly 6,500 employees. These centers play a crucial role in providing technology, operations, analytics and research support to its global operations.
What’s behind the layoffs?
Unlike the 2008-09 financial crisis-led layoffs, today’s layoffs are driven by a fast-evolving technological revolution. At the heart of this shift is Artificial Intelligence. The rise of generative AI has dramatically changed how companies function. This has in turn pushed the companies to reduce headcounts and restructure teams to align with more automated and AI-centric processes.
Layoffs in the tech sector
The technology sector globally was once considered the ultimate haven for job security, generous salary packages and career growth. Now, the sector seems to be undergoing a sweeping reset. Since 2022, approximately 5,00,000 tech workers globally have lost their jobs. Last year (2024) was bloodier, accounting for around 1.5 lakh layoffs. The list of companies involved reads like a who’s who of Silicon Valley — Microsoft, Amazon, Google, Meta, Salesforce and Intel.
The month of July this year began with Microsoft announcing 9,000 job cuts; Intel has followed suit, slashing nearly 5,000 jobs across the United States and Israel.