WRAPUP 2-Fidelity reviews staff, Legg shares dip

* Legg shares hit 11-year low ahead of Wednesday's results

* Fidelity to review staff, report sees 4,000 jobs cut

* Schroders Q3 profit drops, outflows accelerate

* Waddell Q3 misses estimates, stock falls (Recasts, adds Schroders Plc results, Legg dividend)

By Muralikumar Anantharaman

BOSTON, Oct 28 (Reuters) - Financial markets turmoil took a toll on asset managers on Tuesday as Fidelity Investments said it plans to review global staffing levels, Britain's Schroders Plc said it will slash jobs, and Legg Mason Inc (LM.N) shares sank to 11-year lows.

Smaller fund manager Waddell & Reed Financial Inc (WDR.N) said third-quarter earnings missed estimates, and forecast a drop in assets in the current quarter, sending its stock down as much as 11.4 percent to their lowest in a decade. [ID:nBNG148859]. The stock closed down 4.6 percent on Tuesday.

Schroders (SDR.L) will cut a small number of jobs as it cuts costs after third-quarter pretax profit fell to 78 million pounds ($121.5 million) from 98.1 million a year earlier. Investors withdrew 4.1 billion pounds from its funds. [ID:nLS535529].

"The industry is in a state of flux. It seems like a lot of these companies are anticipating a few years where asset levels are going to be quite depressed, and they are right-sizing for the environment," said Alan Rambaldini, equity analyst at Morningstar.