Franklin Resources Will Cut 560 Jobs

Investment management firm Franklin Resources Inc. said it will take a $58-million charge to cut 7% of its work force, the biggest such reduction in the company’s 52-year history. Franklin said it will eliminate about 560 jobs, most of them in the company’s San Mateo headquarters, following a year when assets under management declined $800 million to $220.2 billion, while most competitors reported asset gains. Franklin struggled in 1998 to attract investors because of subpar performance for some of its most popular mutual funds. Overall, Franklin Templeton funds attracted a net $474.1 million during the first 11 months of 1998, down from $15.1 billion during all of 1997, according to researchers at Boston-based Financial Research Corp. In addition to the job cuts, the restructuring charge will cover the costs of divesting some office space in San Mateo, the company said.