Private Equity Shedding Jobs

After years of getting fat, private equity firms such as Blackstone Group (NYSE:BX) is joining the ranks of the slimming down.

Blackstone Group (NYSE:BX) is shedding some 70 jobs, joining an expanding list of private equity firms that are downsizing amid a punishing environment. Before the layoffs the firm had roughly 1,300 employees.

Among the divisions that saw cuts is GSO Capital Partners, a hedge fund manager Blackstone acquired last year, said two people with knowledge of the matter. While GSO has played an active role over the past year financing deals done by Blackstone and other equity sponsors, it has had some problems. A fund it raised to invest in debt securities, for instance, had to fend off margin calls from banks earlier this year after the value of securities it owned declined.

Blackstone joins several other large buyout firms that have announced layoffs this month. Carlyle Group is cutting 100 jobs, or 10% of its staff worldwide, while 3i Group PLC (PINK:TGOPY)is conducting 100 layoffs, representing about 15% of its staff.