The Blubber

Bridgewater Associates, the world’s largest hedge fund, laid off 7% of its staff on Monday as part of efforts to stay agile and retain the capacity to recruit top talent, according to a source familiar with the matter.

Workforce Reduction

The job cuts impact approximately 90 employees, bringing the firm's headcount back to its 2023 levels, the source said, speaking on condition of anonymity because the information is not yet public. Despite the layoffs, the Westport, Connecticut-based firm will continue to hire selectively, the source added.

A Bridgewater spokesperson emphasized the firm's commitment to evolution and maintaining high standards. “For the last three years, Bridgewater has been focused on rapid evolution, setting big goals, and fiercely stopping at nothing to achieve them,” the spokesperson said. “This includes doing hard things during good times, like holding a high bar and keeping the organization nimble.”

Recent Performance and Leadership Changes

Bridgewater, founded by Ray Dalio and now led by CEO Nir Bar Dea, delivered strong performance last year, including an 11.3% gain in its flagship Pure Alpha macro fund—the fund’s best results since 2018. The firm managed approximately $160 billion in assets as of July 2024.

Since becoming sole CEO in March 2023, Bar Dea has implemented significant changes, including reducing the size of Bridgewater’s flagship fund, cutting costs, and overhauling the firm’s unique and sometimes contentious culture. His leadership has involved a management shakeup, with some long-time staff being let go and others promoted as part of a broader restructuring.

Communication to Investors

In a letter to investors about the layoffs, Bridgewater's leadership highlighted their focus on aligning strategy and resources with the firm's objectives. “The result will be a more dynamic ecosystem of ideas, innovation, and impact that underlines our meritocratic values,” the letter stated.

Industry Context

Bridgewater is not alone in adjusting its workforce. Last year, Two Sigma Investments and Brevan Howard Asset Management both reduced their headcounts by around 10%, reflecting broader industry efforts to streamline operations.