Asset manager T. Rowe Price Group will not be renewing its office lease in Tampa, Florida and plans to close its Tampa Operations Center in June 2019, consolidating into the firm's two other sites servicing individual investors and retirement plan participants. The remaining locations are owned multi-building campuses in Owings Mills, Maryland, and Colorado Springs, Colorado.
The decision was made after careful consideration and responds to a growing client preference to engage digitally and the success the firm's digital transformation and technology innovations are having in enhancing online and mobile experiences and generating operational efficiencies.
Currently, about 400 associates work in the Tampa office, with the majority of phone support and other client service roles. Approximately 30 associates with assigned client relationships, including regional relationship managers and members of the retirement plan employee meeting team, will remain in the area working remotely. All other associates are being encouraged to consider relocation by pursuing roles at other sites. The firm continues to hire in Maryland and Colorado and also plans to transfer approximately 220 positions from Tampa to these locations. Given ongoing efficiency efforts and through the site consolidation, the firm ultimately expects that approximately 150 positions will not be replaced during this period. The firm will provide associates with appropriate resources and dedicated transition support.
"While our balance sheet has never been stronger and demand for our approach to active management remains robust, we also need to thoughtfully manage our resources in an increasingly competitive environment," said William J. Stromberg, president and CEO of T. Rowe Price. "Enhancing our operational efficiency so that we can continue investing in our strategic priorities will enable us to further improve the client experience and grow the business for years to come."
"Our individual investor and retirement plan services businesses continue to do well, and we are making this change from a position of strength," added Scott David, head of individual and retirement plan services at T. Rowe Price. "Our commitment to providing high-quality service and innovative experiences to our clients has never been stronger and our associates remain critical to meeting those needs. However, as we adapt to changes in investor preferences and accelerate our digital transformation efforts, we have the opportunity to simplify our operating model and are confident that in doing so we will continue to effectively serve our clients."
