“Fidelity Investments, cutting back in the stock-market swoon, said it would lay off 760 people, or about 2% of its work force,” writes John Hechinger in today’s Wall Street Journal.

“Analysts said the cuts were shallower than expected, given the bear market and the bloodletting at many rivals.”

“Fidelity’s assets under management have declined 19% to $813.1 billion from a peak of $1.01 trillion in August of 2000. The firm’s brokerage unit, seeing trading volumes dry up, has been especially hard hit.”

“Reflecting the trading downturn, Fidelity cut the bulk of the jobs, 382, from its brokerage unit, as well as 70 in its Institutional Services unit, which caters to brokerage firms, banks, insurance companies and investment advisers.”

“The company also laid off 94 in its operations that service company and nonprofit retirement plans and trusts. The rest came from a variety of business locations, such as human resources, legal and corporate affairs. Fidelity, the largest manager of mutual funds, employed 32,493 at the end of September.”

“A Fidelity spokeswoman said the firm wouldn’t be laying off any money managers, analysts or traders. She said the cuts came from a review of various business units and no further layoffs were considered for the rest of the year.”

“The layoffs are in addition to 194 people cut from Fidelity’s BostonCoach car service earlier this month and 160 people from its Institutional Services unit in July. In total, the firm has now announced layoffs of 1,114 people, or about 3% of its work force. Other financial-services firms, such as Merrill Lynch & Co. and Charles Schwab Corp., have cut far deeper.”

“The shallower cuts demonstrate how Fidelity and other companies that rely most heavily on money management have weathered the stock-market downturn better than brokerage firms and investment banks, which are dependent on commissions and other transactions that dry up in a bear market.”

“Money managers get recurring fees from assets under management and have benefited from customers seeking havens in bond and money-market funds — strong sales areas for Fidelity.”

“Jim Lowell, editor of the Fidelity Investor newsletter, said the relatively small layoffs suggest that Fidelity expects conditions to improve in the next six months.”