Raymond James has laid off 4% of its workforce across business lines and international locations, the company announced. The reductions did not include financial advisors.

And due to a significant pay cut among the senior leadership team, the company does not intend to have another round of job eliminations, according to an email by CEO Paul Reilly to its 13,900 employees worldwide on Tuesday.

“This is not easier knowing we entered the year enjoying a series of record-breaking years of growth," Reilly said. "That growth necessitated investment in resources and infrastructure to support more advisors and clients, and to address the other demands of a successful and highly-regulated company.” 

He said the firm’s plan heading into 2020 was to focus on improving efficiencies to prepare for potential market turbulence and recessionary environments. But that was changed with the pandemic and the corresponding economic conditions and rate cuts that effectively wiped out half of the company's earnings.

Steve Hollister, vice president, public communications, said most of the impacted positions were in corporate departments around the country and internationally. The cuts were avoided in advisor and client support areas to avoid impacting service levels, He noted that staff in the Tampa Bay area was impacted, but even with the reductions its employee population matches early 2019 levels with about 5,000 associates there.

The company said that impacted associates will get a full year’s bonus for fiscal 2020, and it expanded its severance policy for more tenured associates by increasing payment to up to a year of total compensation. They will also receive 12 months of Raymond James-paid medical benefits and professional job placement support.

Reilly said the company is well-positioned for growth heading into 2021. Longer term, he said, the company is undertaking a multi-year review to ensure its efficiency “and fully realizing the scale that comes from meaningful investments in back-office modernization and technology. We will also continue to develop a forward-looking real estate strategy reflecting advances in remote work and changing client expectations.”

The company’s next earnings report and analysts call are scheduled for Oct. 28 and 29, respectively.