The Carlyle Group is cutting 10 percent of its staff as a result of the turmoil in the global financial markets, joining a host of firms that have recently downsized to weather the recession.
The firm is cutting 100 employees out of 1,000, primarily in the US. Most of those losing their jobs hold back office positions, though some of the employees work on deals, according to people with knowledge of the situation.
As part of the staff cuts, Carlyle is closing its Menlo Park, California office that has been opened for less than a year.
“In response to extraordinary market conditions, Carlyle has taken measured steps to balance its cost structure with the current investment climate,” Chris Ullman, a spokesman for Carlyle, said. “The firm is well positioned to take good care of our investment portfolio and has the resources to create and respond to compelling investment opportunities.”
Last month, Carlyle closed its Warsaw office and its Asian leveraged finance group, both of which were established last year. The firm’s Warsaw office had 12 employees and focused on Central and Eastern European buyout deals. The Asian leveraged finance group had seven people.
Carlyle is among several firms that have announced staff cuts in the past few days. American Capital, a publicly traded mid-market and mezzanine firm, said it will eliminate 110 jobs and close two offices because of current market conditions. The reductions represent about 19 percent of the firm’s workforce, the firm said, but did not give specific details about which positions would be eliminated. American Capital has invested in private equity and real estate opportunities, the firm said.
3i, the UK-based listed buyout firm, will also reportedly cut 15 percent of its 600-member workforce as part of a cost-cutting programme. About 100 employees will lose their jobs, with cuts mainly focused on back office functions, such as marketing and human resources, according to a report in the Financial Times.