T. Rowe Price announced plans on Wednesday to close an operations center in Tampa, Fla.
The Baltimore-based investment giant’s center, which will close in June 2019, currently employs 400 people. As many as 150 people could be laid off. Another 220 of the positions will be transferred to offices in Owings Mills, Md., and Colorado Springs, Colo., according to the company.
The employees at the center mostly work in phone support and other client service roles servicing individual investors and retirement plan participants. In making the decision, a T. Rowe statement said a consideration was clients’ preference to engage digitally. The firm is putting big money into its tech transformation efforts, redesigning client interfaces has been a focus of that effort. About 30 employees will remain in Tampa, working remotely.
“Our commitment to providing high-quality service and innovative experiences to our clients has never been stronger and our associates remain critical to meeting those needs,” Scott David, Head of Individual and Retirement Plan Services, said in a statement. “However, as we adapt to changes in investor preferences and accelerate our digital transformation efforts, we have the opportunity to simplify our operating model and are confident that in doing so we will continue to effectively serve our clients.”
T. Rowe Price CEO William J. Stromberg said in a statement the decision was “difficult because of the significant impact it will have on our Tampa associates.”
“We are grateful for the many contributions they have made to our clients, the firm, and the community,” Stromberg said. “By sharing this news well in advance we hope to provide them with ample opportunity and support to plan for the transition.”
The move comes after the firm closed two investor centers in March, similarly citing a digital shift, the Baltimore Business Journal reported.