The financial services giant Fidelity announced Monday it will close in 2021, with the announcement coming as it continues its effort to restructure its troubled operations.
The move comes as Fidelity continues to work to address the fallout from the 2016 financial crisis, which the company said led to nearly 1,200 layoffs, a $1 billion impairment charge and the filing of Chapter 11 bankruptcy protection.
The company said in a statement that its business and operating results would be impacted by the change in focus.
The bank’s statement does not include an explanation for the plan.
The announcement comes after Fidelity Chief Executive Scott Roesch said in an interview last week that the bank’s financial results “could not be better” in 2021.
He added that the company was “actively evaluating options for additional capital.”
“We are at a critical point in our transformation and are continuing to evaluate the best way to accelerate the process while also maintaining the value of our assets,” Roescich said in the statement.
Fidelity is the second-largest U.S. bank, with a $9.3 billion market cap.
The lender’s shares fell 2.8% to $39.75 Monday.