AM I NEXT? NO LOVE AT INVESCO - OPPENHEIMERFUNDS

OCTOBER 7, 2019 — 1,300 LAYOFF AND COUNTING

According to the Financial Times, “Invesco has cut 1,300 jobs after absorbing smaller rival OppenheimerFunds earlier this year in America’s biggest fund management deal in half a decade. The terminations represent 12 per cent of the combined headcount of Invesco and OppenheimerFunds based on staffing levels at the end of 2018. The cuts include 850 staff from a single OppenheimerFunds office in Denver that focused on administrative functions.”

Invesco CEO, Martin Flanagan, noted “It was uncomfortable for everybody. But we feel very strongly that we have the best talent.”

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Atlanta, Georgia-based Invesco, an independent investment manager, has announced a major restructuring to accommodate its recent $5.7 billion acquisition of OppenheimerFunds. Therefore it should come as no surprise that the first-round of layoffs, approximately 850 back-office and support employees at Oppernheimer’s Centennial, Colorado offices leaving approximately 150 workers in-place. Work will be transitioned to offices in Houston, Texas or Prince Edward Island, Canada.

According to a spokesperson, the decision was made “to reduce the redundancies as we work toward achieving our cost synergy target of $475 million. While the planned job eliminations are unfortunate, they are an important part of these synergies and achieving the potential of the strategic combination.”

The company is conducting a re-interview effort to select among the best support employees who are being encourage to re-interview for their present positions. The final headcount has not been determined and it is anticipated that activities will be eventually consolidated in Atlanta, Georgia and New York, New York. The offices in Houston, Texas and Downer’s Grove, Illinois remain wildcards.

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?

AM I NEXT? NO LOVE AT URBAN FULFILLMENT SERVICES

Highlands Ranch, Colorado-based Urban Fulfillment Services, a business process outsource vendor for the financial industry and a subsidiary of New Delhi, India-based HCL Technologies has announced the closure of its Westlake Village, California office and laying off 85 employees, including financial analysts, credit risk analysts, financial associates, support staff, and team leaders.

This should not come as a surprise to employees since the company’s acquisition by HCL in 2017 for approximately $30 million. The company specializes in outsourced mortgage operations including document production, fulfillment, debt collection and servicing.

It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?

AM I NEXT? NO LOVE AT AWESOMENESSTV

Santa Monica, California-based digital media company, AwesomenessTV will be laying off 98 employees, approximately 50% of its workforce, at its Santa Monica offices as a natural consequence of its acquisition by New York City-based Viacom. The reduction-in-force included senior management including CEO Jordan Levin.

A Viacom spokesperson noted, “As we begin to integrate Awesomeness and streamline the organization within Viacom, a number of positions were impacted yesterday. We are grateful for the many contributions of each individual and continue to work diligently to ensure a smooth transition.”

It appears that the company was mortally wounded by Verizon” decision to abandon their Go90 video service and its 24.5% investment purchased for $159 million and a multiyear content distribution deal valued at approximately $150 million. The majority owner appeared to be Comcast/NBCUniversal with 51%; Hearst and (TechCrunch parent company by way of Oath) with 24.5%; and Verizon, with 24.5% purchased for $159 million and a multiyear content distribution deal valued at approximately $150 million. Viacom’s purchase price was said to be under $300 million, less than one-half of the company’s valuation.

Are you wondering, Am I Next?