KANSAS CITY, Mo. — Waddell & Reed, an Overland Park-based financial services company, notified the state of Kansas last week of plans to lay off more than 200 workers.
The company also won't occupy a new building currently under construction in downtown Kansas City, Missouri, according to a Macquarie Asset Management spokesperson.
Macquarie Asset Management announced in December 2020 that it was acquiring Waddell & Reed for $1.7 billion. As part of the deal, Waddell & Reed’s wealth management platform will be divested to LPL Financial Holdings.
The fallout from that acquisition is beginning to come into focus.
A Waddell & Reed spokesperson confirmed Tuesday that 219 employees would be affected by the layoff. All employees would be eligible for “comprehensive financial and non-financial severance benefits, including continued subsidized healthcare and outplacement services to assist them in securing new jobs.”
The layoffs would take effect upon the closing of the merger, which is set to happen in late April.
A Macquarie spokesperson said there would be no changes to the Waddell & Reed's Ivy Funds as part of Tuesday’s announcement.
The acquisition came as Waddell & Reed announced plans to move downtown and abandon its Overland Park headquarters.
Waddell & Reed announced during the summer of 2019 that it was exploring the move, which quickly became controversial after members of the KCMO City Council approved tax incentives for the project later that year.
Construction is underway, but a spokesperson from Macquarie Asset Management confirmed Tuesday to 41 Action News that the company would not occupy the new downtown building when it's completed.
