Janus Capital Group said Thursday it plans to eliminate 110 positions, or 9 percent of its workforce, as it copes with a difficult investment climate.
The Denver-based money manager, which employs 1,275, expects to incur $7 million in severance costs during the fourth quarter but estimates the cuts will save $15 million a year going forward.
“In light of the challenging environment, Janus is focused on aligning our expenses with our revenues,” chief executive Gary Black said in an earnings-release statement Thursday.
Janus mutual funds have been especially hard hit by the latest declines in the market.
Assets the fund family manages fell from $191.8 billion on June 30 to $160.5 billion on Sept. 30.
The declines reflect a $26.2 billion drop in the value of investment holdings, $1.1 billion pulled out by investors in its long-term funds and $4 billion removed from money-market funds.
With less money to manage, the revenues that Janus collected declined nearly 10 percent between the second and third quarters.
Janus reported third-quarter earnings of $26 million, or 16 cents a share, Thursday, down from net income of $50.8 million, or 29 cents a share, during the same quarter a year earlier.
Analysts had predicted the company would earn 24 cents a share.
Contributing to the earnings disappointment was a $13 million writedown on securities Janus held from Stanfield Victoria Funding, which borrowed short term to buy mortgage- backed securities.
Janus shares fell $1.73, or 16.7 percent, Thursday to close at $8.61. Janus shares are down by nearly 74 percent this year.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
