Orion Advisor Solutions calls 6% staff reduction a 'final action,' after ballooning headcount 40-plus percent since 2020 by gorging on Brinker, Redtail and five other companies
The Omaha, Neb., administrator of $3.6 trillion will cut 'duplicative' back office jobs to reduce staff to 1,320 from about 1,400.
3 min read- Orion reduced staff by 6% after 40%-plus headcount growth since 2020.
- Layoffs finalize Orion's integration of seven acquired companies.
- Goldman's arrival preceded the cuts, streamlining duplicated roles.
- Orion affirms service quality despite staff reductions.
Twenty steps forward. Now one painful but “final” step back.
Orion Advisor Solutions is letting go about 80 people after 25 years of growth to 1,400 staff, – 400 or 500 additions in just in the past three years.
The Omaha, Neb., software and investments provider -- administering $3.6 trillion – “eliminated a number of duplicative and non-client-facing roles across the organization,” the company says in an emailed statement.
The personnel cuts mark an end to an M&A gorging that devoured seven companies in the past few years.
Orion used up a pile of Genstar and TA Associates cash to buy a technology and investments arsenal with firepower similar to chief rival Envestnet.
“This is the final action… of bringing these businesses together,” the Orion statement says.
Eric Clarke pays about $50 million for 'monopoly piece' Advizr as Orion sheds some of its 'API utopia' image to shred mega-competitors
The layoffs may represent a final chapter in Orion's massive spate of inorganic growth and assimilation.
Stands behind services
New Executive Chairman Charles Goldman may be midstream in overhauling Orion – having already replaced beloved CEO Eric Clarke with Natalie Wolfsen, who will take the reins soon. See: Orion names 'left-brained' Natalie Wolfsen as CEO to replace Eric Clarke, and AssetMark, which synchronized its announcement, hires Michael Kim as her replacement
Goldman – with Clarke – has now relieved his protégé of the CEO hazing rite of having to cut staff upon arrival.
“No, it does not feel good, but when they brought in Charles, I assumed he would be assessing head count and other costs,” says Joel P. Bruckenstein, producer of the T3 conference series. See: Charles Goldman takes seat on Orion board sparking thoughts about RIA custody comeback in Omaha and just what it can do with the Redtail, Brinker and TownSquare acquisitions
Story Timeline
Orion praised the value of the people leaving. Yet, it also insists that Orion can thrive without them.
“We appreciate and value the contributions these individuals have made during their time at Orion.”
Orion buys BasisCode to tame its own data tiger including HiddenLevers and the roiling IT trove of 2,200 RIAs with $1.7 trillion AUA
“Eliminating these positions will not change the services we provide to our advisors, and we remain confident in our opportunities ahead to deliver transformative technology to power advisors and win for investors.”
Work in progress
Orion's right-sizing may have arrived, but its software transformation will need to keep advancing, Bruckenstein says.
“Financial planning still needs work. Fully integrating the risk and behavioral side of the house is still a work in progress.
"That said, Brian McLaughlin is an outstanding technologist. If anyone can figure it all out, he can. I just hope he is given the necessary resources to get the job done," he adds.
Orion bought Advizr for financial planning in 2019, bought Hidden Levers in 2021 for risk and hired Daniel Crosby for investor behavior modification.
Orion also bought BasisCode in late 2021. See: Orion buys BasisCode to tame its own data tiger including HiddenLevers and the roiling IT trove of 2,200 RIAs with $1.7 trillion AUA
It bought TownSquare to do OCIO services in 2022.
The Orion statement echoes Charles Schwab Corp. which has signaled that it will imminently eliminate about 1,500, or about 5%, of its 32,000 positions as a final move after merging with TD Ameritrade (TDA). Schwab said the cuts will save $500 million annually.
This staff-cutting news was first reported by Ian Wenik at Citywire.
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