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Industry Spotlight > RIAs

Hightower Lays Off About 5% of Staff

By Jeff Berman

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Hightower, like Envestnet and Orion Advisor Solutions only a few days earlier, said it was cutting jobs.

In Hightower’s case, about 5% of the Chicago-based registered investment advisor’s staff are affected, a company spokesperson said Wednesday.

The layoffs were “across the corporate organization” but “not advisors,” and there were no changes among the firm’s executives as part of these “recent internal adjustments,” according to the spokesperson.

“It’s important to clarify that these decisions were made as part of our ongoing strategic realignment, aimed at optimizing our resources and ensuring the long-term success of our business,” the Hightower spokesperson said.

The spokesperson added: “We remain confident in our financial stability and are committed to delivering exceptional service to our clients within the Hightower community as we move forward.”

Hightower, which as of June 30 had about $131 billion in assets under manamgement, has announced several RIA acquisitions and investments in 2023.

In August, the company said it facilitated a sub-acquisition on behalf of Highland Private Wealth Management, its advisory business based in Bellevue, Washington, with Trellis Advisors, an RIA based in Ellensburg, Washington, with over $470 million in AUM.

In late May, the company said it acquired RIA Vigilant Wealth Management, a full-service wealth management business with offices in Portland, Maine, and Portsmouth, New Hampshire, that manages about $2.3 billion in client assets across 500 households.

Earlier that month, Hightower said it made a strategic investment in TEN Capital Wealth Advisors, a $1 billion RIA with offices in Seattle and Spokane, Washington, calling it one of the fastest-growing firms in the Pacific Northwest.

Layoffs at Envestnet and Orion

As it noted in its last earnings call, Envestnet last week said that “we signaled the conclusion of our investment cycle, and we are transitioning to a normalized expense and operational environment in order to meet our goals for margin expansion and cash flow.”

“Given macroeconomic headwinds, this requires maintaining a disciplined approach to managing our expenses and optimizing operational efficiency companywide,” Eric Jones, head of corporate communications for Envestnet, told ThinkAdvisor by email Monday.

He added: “With this in mind, we made the difficult decision to eliminate certain positions. These are deliberate steps to continue to deliver value to shareholders and customers given the current market conditions and our significant goals for the future.”

In a statement provided to ThinkAdvisor on Monday, Orion noted it has “acquired seven companies over recent years and this is the final action of the team synergies of bringing these businesses together.” As a result, the firm said, “A number of roles were eliminated — the majority of which were duplicative and non-client-facing.”

Orion declined to specify how many jobs were eliminated. Citywire reported that about 80 jobs were cut, citing “a source with knowledge of the situation.”

Pictured: Hightower CEO Bob Oros

Jeff Berman

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