T. Rowe Price Associates Inc. plans to open a financial center in Colorado Springs on Monday that will employ up to 750 people over the next five years.
The mutual fund company has hired 95 workers, and it expects to add another 80 to 100 people this year in the Colorado Springs office.
"The Colorado office has in no way an effect on our Baltimore operations," said Edward F. Giltenan, a spokesman at Baltimore-based Price. "It is essentially a relocation of our services that already exist in the West."
Price will close its customer service operations in Los Angeles on April 30, and move them to Colorado Springs. The Los Angeles office employs 85 people, 60 of whom will leave the company because of the relocation. Fifteen employees, however, will move to Colorado Springs, and 10 will stay in Los Angeles to work at a smaller investor center.
"We needed to centralize things, and it was a good time to take other cities under consideration," Giltenan said. "In addition, we like to have people in the Western time zone who can serve shareholders who like to conduct business after hours."
Giltenan said the company is moving toward offering 24-hour customer service. He said Colorado Springs was selected because its cost of living is more reasonable than Los Angeles', the work force is highly educated and employee turnover is comparatively low.
Colorado Springs is giving Price $2.3 million in training grants and tax credits, he said.
"It is a very big deal," said Gary Cuddeback, who is director of economic development for Colorado Springs. "Ultimately, it will be one of our larger employers if they get the 750 employees."
The majority of the employees in the Colorado Springs operation will work as service representatives, answering customers' questions about mutual funds. Others will work in 401(k) retirement plan administration or information technology.
Price employs about 3,500 people, and most of them work in the Baltimore area at the headquarters office downtown and in Owings Mills. Price is expanding its operations in Owings Mills, where it is erecting two office buildings to house service representatives, 401(k) administrators and employees who specialize in marketing. Price also has facilities in Tampa, Fla.; San Francisco; Glen Allen, Va., and Washington.
Pub Date: 3/27/99