In a sign of economic slowdown hitting the private equity industry directly, Carlyle has cut 10% of its staff, mostly support and administrative staff including accounting and personnel. The firm, which recently decided to close its Central & Eastern Europe (CEE) operations and Asia Leveraged Finance Group, will lay off about 100 people from its 1,000 full-time employees in 33 offices in 21 countries.
Those who are losing their jobs will also include a few deal makers, reported Washington Post. The firm said most of the layoffs will come from its US offices. It's also not known if the lay off will impact India office.
"We did a thorough examination of every aspect of the firm, and we are adjusting the firm's cost structure to the current investment climate," he said. "We are still going to be the largest firm out there in terms of products offered. These are modest, targeted cuts to position the firm," Washington Post reported, quoting Ullman.
Carlyle has $91.5 billion under management and $40 billion in money committed from investors, which is yet to be invested. It recently raised $14 billion for another US buyout fund.
Carlyle said as there is a decline in volume of deals, it could not justify keeping the same level of staffing as it had during the boom time. "These are tough times. We are reverting to the size we were as of 2007 staffing. We need to balance our cost structure, which is people and expenses, with the volume of business," Ullman has been quoted as saying.