Fidelity Investments is cutting approximately 800 jobs while planning to hire thousands of new workers, reshaping its technology teams through a restructuring announced in May 2026. The Boston-based financial services company confirmed the layoffs represent roughly 1% of its 80,000-person global workforce.
The cuts primarily affect the company’s technology and product delivery teams. Fidelity said the changes are designed to streamline management layers and create room for early-career engineering talent. A company spokesperson stated the restructuring aims to get “the right combination of skills in place for where Fidelity and its customers need them most,” focusing on “creating more room for early career, hands-on engineering roles and streamlining management layers.”
The hiring push is substantial. Fidelity plans to add approximately 3,300 new jobs this year, including nearly 2,000 early-career engineering roles and about 1,300 additional tech and product employees by year’s end. The company is also working to fill roughly 2,000 open positions across its organization.
Despite widespread industry claims that artificial intelligence is driving workforce reductions, Fidelity has insisted AI played no role in its decision to cut positions. Instead, the company emphasized it needs real-world engineers and hands-on workers to roll out key products and services immediately. According to Boston College economist Brian Bethune, companies face a “massive supply bottleneck” in AI computing capacity, pushing some firms to hire computer science graduates to move development forward while waiting for sufficient data center infrastructure.
The restructuring reflects a broader trend in technology and finance sectors. In March 2026, layoffs in the information sector reached 66,000, the highest level since the pandemic, according to Bureau of Labor Statistics data. The sector has shed 342,000 positions—11% of the total—since reaching a peak in November 2022.
Fidelity’s approach contrasts with other major tech firms. Block, the parent company of Square, cut 40 percent of its workforce in February, with CEO Jack Dorsey citing AI as enabling “a new way of working which fundamentally changes what it means to build and run a company.” Similarly, Amazon and Meta have attributed significant layoffs to AI advancements.
The financial services industry has seen previous restructurings. In 2024, Fidelity cut about 700 jobs. The current move comes weeks after the company ended its hybrid work policy, requiring U.S. staff to return to offices five days a week beginning June 2026.
Sources
- The Boston Globe — Reporting on Fidelity’s restructuring, hiring plans, and economic context around AI and employment
- Yahoo Finance — Confirmation of 800 job cuts and hiring thousands announcement on May 8, 2026
- NBC Boston — Details on technology and product team reorganization
- People Matters Media — Information on hiring targets including 1,300 tech/product roles and 2,000 early-career engineering positions
- Bloomberg — Reporting on Fidelity’s restructuring of technology and product-delivery teams
- MassLive — Confirmation that Fidelity is laying off 800 workers and hiring 2,000 new people
- Hubbis — Details on hiring approximately 1,300 product and technology employees and 2,000 early-career roles
