Fidelity Investments To Offer Buyouts For Older EmployeesFidelity Investments To Offer Buyouts For Older Employees

BOSTON, Feb 27 (Reuters) - Fidelity Investments plans tooffer voluntary buyouts to employees who are 55 years or older,and who have worked for the Boston-based fund firm at least 10years, a company executive said on Monday.

The buyout offers came as Fidelity, known for its activelymanaged mutual funds, faces strong competition from low-costindex funds and other products.

The executive, speaking on condition of anonymity becausethe news has not been fully announced internally, said theoffers will include extended healthcare coverage and what theexecutive described as "generous" financial packages based onthe worker's years of service and role.

Closely held Fidelity has about 45,000 employees, a numberthat has held steady in recent years, this person said. Thebuyout packages appear to be the first time Fidelity has madesuch a broad offer, the executive said.

With offices around the United States, it is not unusual forFidelity to lay off or add staff. For instance it recentlydescribed plans to lay off 100 employees who work near Dallas,while adding 135 new workers in Albuquerque, New Mexico, according to local news reports.

Fidelity on Feb. 16 reported its financial services operating profit rose nearly 20 percent to $3.5 billion for2016, despite big withdrawals by investors from the company'swell-known actively managed funds.

(Reporting by Ross Kerber; Editing by Jonathan Oatis)