Jeff Maggioncalda, president and chief executive officer of the privately-held company, said Financial Engines ended a recent corporate cost initiative with 175 employees.
He said some of the cuts result from an efficiency reorganization which created a customer service department. Several duplicative jobs were also combined, he said.
He said Financial Engines remains financially healthy with a more than adequate supply of operating cash.
Any personnel reductions couldn’t be too large because of the demands of Financial Engines’ current business and significant chunks of new business Maggioncalda said the company plans to announce soon.
He said the company provides financial advice to the employees of its 650 clients. “To service that kind of customer base, we really can’t pull back too much and we haven’t,” Maggioncalda said.
Several financial reporters found out about the job reductions Thursday morning from tips sent via e-mail. A company representative said Financial Engines was looking into e-mails’ origin, which arrived at PLANSPONSOR.com from an untraceable Yahoo-based email address with the – fake – sender’s name of William Sharpe, Financial Engine’s co-founder and chairman.
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