Fidelity to cut around 1,000 jobs as it revamps technology operating model

Fidelity Investments is preparing to cut roughly 1,000 jobs globally as the financial services company restructures its technology and product operations to support a new delivery model.

The workforce reduction, first reported by the Boston Herald, affects about 1 per cent of Fidelity’s global employee base of 80,000 people. The company said the move is part of a broader organisational transition rather than a cost-cutting exercise.

Fidelity said around 25,000 roles are shifting into what it described as an “evolved Technology and Product Operating model”, designed to accelerate product development and modernise internal capabilities.

The company is simultaneously expanding hiring in engineering and product functions, signalling a broader reshaping of workforce skills rather than a simple reduction in headcount.

Technology overhaul drives workforce changes

According to a company spokesperson quoted by the Boston Herald, Fidelity is restructuring teams to align staffing with changing business and customer requirements.

“As part of this transition, we made the difficult decision to eliminate the roles of roughly 1% of our workforce,” the spokesperson said.

“At the same time, however, we are planning to hire nearly twice as many software engineers, in addition to the thousands of open roles we are actively recruiting for today.”

The company currently has more than 2,000 open positions, including around 400 technology and product-related vacancies. Fidelity also plans to hire another 1,300 employees in those areas before the end of the year.

The restructuring includes a push towards younger engineering talent, with the company seeking nearly 2,000 early-career, hands-on roles.

“These changes are about getting the right combination of skills in place for where Fidelity and its customers need them most,” the spokesperson added.

Workforce restructuring coincides with office return

The operational changes come shortly after Fidelity announced plans to bring Boston-based employees back to the office full-time from September.

The company had previously operated under a hybrid structure that required staff to work in person for two weeks out of every four.

Fidelity said physical workplace collaboration remained important to its long-term culture and development strategy.

“Fidelity’s belief is that being physically together creates more opportunities for a meaningful associate experience filled with connection, mentorship, and learning,” the company said in a statement cited by the Boston Herald.

The company employs around 6,200 people in Boston, though it remains unclear how many of the planned layoffs will affect employees in the city.

Fidelity also plans to retain its main Summer Street office while transitioning operations to the Commonwealth Pier campus in the Seaport district.

New operating structure begins in June

The company said the transition towards the revised technology and product model is already under way.

From June 1, all technology and product teams will begin operating under the updated structure.

According to Fidelity, the new model is intended to accelerate the development of customer-facing capabilities, including digital experiences for self-directed investors and traders.

Key details of the restructuring include:

• Around 1,000 jobs expected to be eliminated globally
• Workforce reductions equal roughly 1 per cent of Fidelity’s employee base
• Approximately 25,000 roles transitioning into the new operating structure
• More than 2,000 open positions currently available across the company
• Around 400 open roles linked to technology and product functions
• Plans to hire 1,300 additional tech and product employees this year
• Nearly 2,000 early-career engineering roles targeted for recruitment
• Full return-to-office mandate for Boston employees beginning in September

Financial firms continue technology reset

Fidelity’s restructuring reflects a broader trend across financial services firms as companies modernise technology operations while reassessing workforce structures.

Large financial institutions have increasingly focused on engineering-led product development, digital investing platforms and streamlined management structures to improve speed and operational efficiency.

The company’s emphasis on reducing management layers while increasing hands-on engineering capacity highlights changing workforce priorities inside financial services organisations.

Fidelity maintained that the changes are linked to long-term operational evolution rather than immediate financial pressure.

“Fidelity is continuously improving its working model to best position ourselves to meet the evolving needs of customers,” the spokesperson said.

The company’s approach suggests that hiring and layoffs are increasingly occurring simultaneously across corporate America as employers prioritise specific technical capabilities while reducing roles considered less aligned with future operating models.