Carlyle To Cut About 100 Jobs — Source

Private equity firm The Carlyle Group is cutting about 100 jobs — around 10 percent of its staff — a source familiar with the situation said on Wednesday.

The reductions are the first significant cuts made by a large U.S. private equity firm since the global economic crisis hit. The industry employed an estimated 76,700 people worldwide at the beginning of 2008 according to research company Preqin.

“In response to extraordinary market conditions, Carlyle has taken measured steps to balance its cost structure with the current investment climate,” the company said in a statement. “The firm is well positioned to take good care of our investment portfolio and has the resources to create and respond to compelling investment opportunities.”

The cuts are separate from the 18 people it laid off earlier this month by shutting its operation in central and eastern Europe and its leveraged finance team in Asia.

The majority of the reductions will be back office jobs and most are in the United States, the source said. Washington, D.C.-based Carlyle will return to levels that are about the same as late 2007, with around 900 staff.

Carlyle is one of the world’s largest private equity firms. It has more than $91.5 billion under management and investments in companies such as fast food chain Dunkin’ Donuts, semiconductor firm Freescale Semiconductor and pharmacy chain Alliance Boots.

The axe is also swinging on the private equity industry in Europe, according to a report in the Financial Times that said London-based 3i Group Plc is about to cut 15 percent of its workforce, or about 100 people. 3i declined comment.

By Megan Davies

(Additional reporting by Simon Meads in London; Editing by Andre Grenon)