NEW YORK – Two Sigma Investments, a well-known hedge fund, will reduce its workforce by approximately 200 employees, a move that comes after a comprehensive review of the business by new CEOs Carter Lyons and Scott Hoffman, Bloomberg News reported. . The layoffs, announced on Thursday, account for about 10% of the company’s workforce, which includes about 2,000 people.
The review, led by Lyons and Hoffman, does not affect any portfolio managers. Instead, the job cuts spread across various departments including corporate, engineering, modeling and commercial, and securities units. The co-CEOs, who took the helm in September following the departure of founders John Overdeck and David Siegel from day-to-day operations, aim to effectively restructure the firm’s services.
In a memo to employees, Lyons and Hoffman said, “This location-specific review revealed that our business is strong and poised for continued growth. We have also identified opportunities to direct our resources more effectively in areas that will create the greatest value.” The decision to direct staff reflects the company’s strategy to improve operations and focus on areas of potential growth.
Two Sigma, known for its data- and technology-driven approach to investing, has not publicly commented on the layoffs. The company’s leadership change earlier this year marked a major change, as Overdeck and Siegel have been in charge since the hedge fund was founded.
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