KANSAS CITY, Missouri – 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 will also not occupy a new building currently under construction in downtown Kansas City, Missouri, according to a spokesperson for Macquarie Asset Management.
Macquarie Asset Management announced in December 2020 that it was acquiring Waddell & Reed For $ 1.7 billion. As part of the agreement, Waddell & Reed’s wealth management platform will be transferred to LPL Financial Holdings.
The consequences of that acquisition are beginning to 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 health care and relocation services to help them obtain new jobs.”
The layoffs would take effect after the closing of the merger, which is expected to take place at the end of April.
A Macquarie spokesman said there would be no changes to Waddell & Reed’s Ivy funds as part of Tuesday’s announcement.
The acquisition occurred as Waddell & Reed announced plans to move downtown and abandon their Overland Park headquarters.
Waddell and Reed announced during summer 2019 who was exploring the measure, which quickly became controversial after members of the Tax incentives approved by the KCMO City Council for the project later that year.
Construction is underway, but a spokesperson for Macquarie Asset Management confirmed to 41 Action News on Tuesday that the company would not occupy the new downtown building when it is completed.