Lazard Job Cuts: Financial Firm To Cut 200 Jobs, Close Three Offices

Lazard Ltd. (LAZ) will reportedly be closing three of its offices and cutting jobs as it looks to refocus its business in what it is calling a “realignment.”

About 7% of the workforce will be cut from Lazard’s asset management unit with other cuts, possibly coming from the investment banking side of the business, a source told Bloomberg.

A company spokeswoman told the news outlet that offices in Lima, Mumbai, and Perth, Australia, will close along with the planned departure of some asset management strategies, which account for about $300 million.

As many as 200 jobs will be affected across Lazard’s business units, but according to Evan Russo, chief financial officer for the firm, the company will continue to hire, keeping its headcount virtually the same.

The “realignment” comes as Lazard reportedly looks to overhaul its underperforming business groups.

Lazard CEO and Chairman Ken Jacobs told the news outlet in an interview, “There have been some changes in the macro environment globally, which leads us to believe there’s a better use of resources in other parts of the firm. It’s more matching costs with revenue where the opportunity exists.”

Lazard reported its Q3 earnings on Thursday, saying that its operating revenue was $588 million. Net adjusted income was $88 million with a GAAP basis of $47 million.

“We see increased activity in our Financial Advisory business, and continue to provide clients with a diverse range of innovative investment solutions that position our Asset Management business well for the future,” Jacobs said in a statement.

“We are managing the firm with cost discipline while investing in our businesses to serve clients, recruit and develop the best people, and build shareholder value,” he added.

Shares of Lazard stock were down 3.30 percent as of 2:17 p.m. ET on Thursday.