Two Sigma to Lay Off 200 Employees - Bloomberg

NEW YORK - Leading hedge fund Two Sigma Investments is preparing to lay off approximately 200 employees, representing about 10% of its workforce of around 2,000, following a comprehensive business review by its new co-CEOs Carter Lyons and Scott Hoffman, as reported by Bloomberg News.

The review conducted under Lyons and Hoffman did not impact portfolio managers. Instead, the layoffs affected corporate, engineering, modeling, and trading as well as securities units. The co-CEOs, who took over management in September after founders John Overdeck and David Siegel stepped back from daily operations, aim to realign the firm’s resources more efficiently.

In a note to staff, Lyons and Hoffman stated, "This sector-specific review demonstrated that our business is strong and ready for continued growth. We also identified opportunities to more effectively direct our resources towards areas that will create the most value." The decision to optimize the workforce reflects the company's strategy to streamline operations and focus on potential growth areas.

Known for its data-driven and technological investment approach, Two Sigma did not make a public statement regarding the layoffs. The leadership change that occurred earlier this year marked a significant shift, given that Overdeck and Siegel had been involved in the management of the hedge fund since its inception.