INVESCO TO LAY OFF 850 AS IT ABSORBS OPPENHEIMER
Invesco, which announced plans in October to purchase OppenheimerFunds, notified state labor officials Friday that it is cutting 850 jobs at Oppenheimer’s Denverarea office.
The Oppenheimer office is at 6801 S. Tuscon Way in Centennial. About a thousand people work there, according to Oppenheimer officials. By the time Invesco’s estimated $5.4 billion purchase of the company closes in late May, that number will begin its descent to somewhere around 150 people.
Invesco had previously announced that by combining the two money management firms, it expected to achieve $475 million in “targeted expense synergies,” according to documents the company shared with investors. These cuts are part of that strategy.
“The job eliminations are unfortunate but necessary to achieve the $475 million cost synergy target,” Invesco spokeswoman Jeaneen Terrio said Friday.
Invesco was required to notify state officials and workers of the impending cuts under federal law. In a letter addressed to Centennial Mayor Stephanie Piko that was also provided to state labor officials, Invesco head of human resources Washington Dender wrote that “the Company’s current plans do not involve closing the entire facility.”
Oppenheimer’s investment team and support staff are expected to remain in the Denver area, but other overlapping services will be moved to Houston or to Prince Edward Island, Canada, according to company officials.
The cuts are expected to take place over an 18-month period starting May 25. All laid-off workers will receive at least three months’ severance pay and a cash stipend to assist in paying for health benefits. The company also vowed to help workers look for new jobs or prepare for retirement, according to the letter delivered Friday.
“Oppenheimer has been a great partner to the city. They have a very talented workforce who will be well received in our current work environment,” Piko said in a state-
ment provided to The Denver Post. “We understand the change in business model and appreciate the efforts that have made to help employees during this transition.”
The Centennial building is Oppenheimer’s only Denver-area office. The Oppen- heimer name will go away once Invesco closes the deal to buy the firm.
Invesco, once a major player in Denver’s financial services landscape, with its name even gracing the Denver Broncos’ stadium, does not have an existing footprint in the state.
The 850 positions being eliminated are the most jobs cut by a single employer in Colorado since Frontier Airlines laid off 1,152 workers in 2015.