The Financial Planning Association is on the verge of laying off some of its 79-member staff, FPA Executive Director Marvin Tuttle Jr. confirmed today.
Tuttle would not comment on details of the plan, saying specifics will be released either today or Monday.
The FPA is expected to reduce its staff by up to 15% and will also institute a hiring freeze, according to sources.
Like other organizations and companies that are downsizing, the FPA says it is reducing its work force because it expects revenues to decline due to the recession, Tuttle said.
The FPA has already seen a 2% drop in its annual renewals, he said. The organization is also anticipating reductions in its other revenue sources, including corporate sponsorships, advertising and conference registrations.
"What we're doing is anticipating further decline," he said. "We are seeing trends of that happening."
The FPA increased the annual dues paid by its 28,500 members 33% on June 1, to $395, but the increased revenues from that move are not expected to be enough to offset overall revenue declines, Tuttle said, noting that dues comprise just 50% of total revenues.
Part of the drop in renewals may be a temporary backlash to the dues increase, Tuttle said, but the economy is also a contributing factor.
"I think a lot of members are in a position where they have to make hard choices," he said. "We're seeing more people that are staying home and taking advantage of our local chapter meetings."
The FPA has no plans to cut back on its national events, however. "We don't plan to do that-that's a core competency of our organization," Tuttle said.