By NEW YORK – Two Sigma Investments, a prominent hedge fund, is set to reduce its workforce by approximately 200 employees, a move that comes after a comprehensive business review by its new co-chief executive officers, Carter Lyons and Scott Hoffman, Bloomberg News reported. The layoffs, which were announced on Thursday, account for about 10% of the firm’s staff, totaling around 2,000 individuals.
The review, led by Lyons and Hoffman, did not affect any portfolio managers. Instead, the job cuts spanned across various departments including corporate, engineering, modeling and trading, and securities units. The co-CEOs, who assumed leadership in September following the step back of founders John Overdeck and David Siegel from daily operations, aim to realign the firm’s resources more efficiently.
In a memo to staff, Lyons and Hoffman stated, “This area-specific review has revealed that our business is strong and poised for continued growth. We have also discovered opportunities to more effectively direct our resources to areas that will drive the most value.” The decision to streamline the workforce reflects the company’s strategy to optimize operations and focus on areas of potential growth.
Two Sigma, known for its data-driven and technological approach to investing, has not publicly commented on the layoffs. The company’s leadership change earlier this year marked a significant shift, as Overdeck and Siegel had been at the helm since the hedge fund’s inception.
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