Wealth management technology companies Envestnet and Orion Advisor Solutions have recently confirmed their decision to lay off employees. While Envestnet spokesperson, Eric Jones, did not disclose the number of positions affected, he mentioned that the company made this difficult choice as a part of transitioning away from a period of heavy investment. The goal is to achieve a normalized expense and operational environment in order to meet their objectives for margin expansion and cash flow.
Jones expressed that the current market environment has presented challenges and they believe that adopting a disciplined approach to managing expenses and optimizing operational efficiency is necessary for the company as a whole. Despite these changes, Envestnet shares gained 2% on Friday, closing at $44.03. However, the stock has seen a year-to-date decline of 29%.
Earlier on Friday, WealthManagement.com reported on the layoffs, citing an internal company memo sent by Envestnet CEO Bill Crager to employees. This news follows the recent announcement of Joshua Warren being appointed as the chief financial officer. Warren, a former executive at BlackRock, will officially assume his new role on November 15th, succeeding Peter D’Arrigo, who has been CFO since 2008.
Orion Confirms Layoffs, Emphasizes Intention to Provide Uninterrupted Service to Advisors
Orion, a prominent company in the financial services industry, has acknowledged the occurrence of recent layoffs. While the exact number of employees affected and the specific divisions involved were not disclosed, Citywire reports suggest that approximately 80 positions have been eliminated, as per an anonymous source familiar with the situation.
According to Orion, these job cuts have resulted from the integration of seven companies that the organization has acquired over the past few years. In a statement, Orion clarifies that most of the roles eliminated were duplicative and non-client-facing. The company reassures stakeholders that these reductions will not affect the quality of service provided to advisors and expresses confidence in its ability to continue delivering transformative technology solutions for investors.
It is worth noting that Natalie Wolfsen, previously the CEO of AssetMark Financial (AMK), will soon take on the role of CEO at Orion. However, she is not expected to assume her duties until mid-October. Wolfsen will be succeeding Eric Clarke, the founder and current chief executive of Orion. Notably, Charles Goldman, the Chairman of Orion and former CEO of AssetMark, will also be working alongside Wolfsen.
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