(Bloomberg) — Two Sigma Investments will lay off about 200 employees after the company’s new co-chief executive managers conducted a comprehensive review of the hedge fund’s operations.

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The layoffs did not involve portfolio managers, said a person with knowledge of the matter, who asked not to be identified discussing personnel details. Thursday’s cuts represent about 10% of the company’s approximately 2,000 employees.

Those affected were in the corporate, engineering, modeling and trading and securities departments, according to a memo to Bloomberg News staff.

The cuts mark the first public, sweeping change implemented by co-CEOs Carter Lyons and Scott Hoffman, who took the reins in September after the company’s feuding billionaire founders stepped down from the executive board.

“This area-specific assessment has demonstrated that our company is strong and poised for continued growth,” Lyons and Hoffman said in the memo. “We have also identified opportunities to more effectively focus our resources on areas that deliver the most value.”

A representative for Two Sigma declined to comment.

The dispute between Two Sigma’s billionaire founders – John Overdeck and David Siegel – became so charged that the two resigned. It was the company’s largest management overhaul in its 23-year history. The duo will retain their shareholdings and remain chairman. Tensions between the founders had become so tense that the company identified the breach as a material risk in a March 2023 filing with regulators — an unusual move for any hedge fund, let alone one as secretive as Two Sigma .

The firm’s Absolute Return Enhanced fund — its largest by assets — is up 11.2% this year through Nov. 15, one person said. Fixed assets are at a peak of $64 billion.

Brevan Howard Asset Management, one of the world’s best-known hedge funds, also cut jobs in its bid to streamline operations, cutting about 10% of its workforce earlier this year.

–With help from Nishant Kumar.

(Updates with additional context in the seventh paragraph and performance numbers in the eighth.)

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