Hightower, a prominent wealth management firm, has revealed plans to reduce its workforce by approximately 6%, resulting in the elimination of 21 positions. These layoffs, which were implemented across the corporate organization, do not include any advisors.

According to a spokesperson, these decisions were made as part of Hightower’s ongoing strategic realignment efforts. The firm aims to optimize its resources and secure long-term success for its business. Despite the layoffs, Hightower remains confident in its financial stability and maintains a strong commitment to delivering exceptional service to its clients within the Hightower community.

This move mirrors recent reductions in workforce at other wealth management technology companies, such as Envestnet and Orion. Envestnet attributed the layoffs to “macroeconomic headwinds” and an initiative to establish a more stable financial foundation by normalizing expenses and operations after a period of significant investment. Meanwhile, Orion rationalized its cuts by stating that they were necessary to eliminate redundancy and unnecessary positions resulting from the integration of multiple acquired firms.

Hightower has been actively acquiring registered investment advisors this year. Through a combination of direct acquisitions and subacquisitions, the firm has executed 11 deals, with the most recent being the acquisition of GMS Surgent in July. This accounting firm is expected to enhance Hightower’s tax services for its advisors. In 2020, Hightower acquired a total of seven firms.

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