Fidelity Investments, the world's biggest mutual fund company, said Thursday it will reduce global staff by 2.9 percent in November, affecting up to 1,288 jobs, with a further round of job cuts coming early next year.

"These are extraordinary times and while Fidelity remains strong and growing, prudent management warrants that we carefully examine all of our costs to make certain we come out of this econonmic downturn in a position to capitalize on opportunities for our customers," Fidelity said in a statement.

Fidelity President Rodger Lawson told employees in an e-mail Thursday that it would make layoffs this month and in the first quarter of 2009, without citing a specific number, a source close to the world's biggest mutual fund company told Reuters.

Mutual fund industry newsletter Insight said in October that Fidelity may cut up to 4,000 jobs. Fidelity declined to comment on the layoffs then, calling it speculation.
(Reuters)