(Bloomberg) — Two Sigma Investments will dismiss roughly 200 employees after the firm’s two new co-chief executive officers conducted a wide-ranging review of the hedge fund’s business.
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No portfolio managers were included in the dismissals, according to a person familiar with the matter, who asked not to be identified discussing personnel information. Thursday’s cuts represent about 10% of the firm’s roughly 2,000 employees.
The cuts affected staffers in the corporate, engineering, modeling and trading, and securities units after executives participated in the review, which was led by Two Sigma’s new co-CEOs Carter Lyons and Scott Hoffman, according to a memo to staff seen by Bloomberg.
“This area-specific review has revealed that our business is strong and poised for continued growth,” Lyons and Hoffman said in the memo. “We have also discovered opportunities to more effectively direct our resources to areas that will drive the most value.”
A representative for Two Sigma declined to comment.
Hoffman and Lyons took the reins in September after the hedge fund’s feuding billionaire founders — John Overdeck and David Siegel — stepped down from day-to-day management earlier this year.
Another of the world’s best known hedge funds turned to job cuts this year as it sought to streamline operations — Brevan Howard Asset Management also cut around 10% of its workforce earlier this year.
–With assistance from Nishant Kumar.
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