Tough market conditions over the past year have pushed both Merian Global Investors and Schroders to shake up their respective businesses moving into the New Year.
While restructures and potential job losses are not the news employees want to hear as we fast approach Christmas, both firms pointed to generating efficiencies to drive growth as a key reason behind their decisions.
Realigning resources
The statement issued by Schroders made no reference to any job losses, but a source “familiar with the matter” told newswire Reuters that around 200 roles will be cut, globally.
Despite this, a spokesperson for Schroders told International Adviser that the firm “will have more people at the end of 2019 than it did at the start of the year”.
The fund management firm said: “We have a number of initiatives across the group to drive greater efficiencies and generate growth.
“This includes realigning our resources which allows us to continue investing where we see strategic growth opportunities, in areas such as Private Assets and Wealth Management.
“We have also undertaken a targeted restructuring of teams to enable people to step up and achieve their potential as part of their career development.”
Decision not taken lightly
Merian was born out of Old Mutual Global Investors in June 2018, after its single-strategy business was sold via a management buy-out.
It is not clear how many roles at are risk at the firm.
In a statement, chief executive Mark Gregory said: “Against a very difficult market environment, we have conducted a review of our business to ensure we are positioned as efficiently as possible to maximise future growth and reduce expenditure.
“As a result of this review, the business will undergo a restructure.
“This will allow us to raise revenue, as well as create a more agile business with increased individual accountability and deliver on our growth potential.
“As a consequence of the restructure, we have launched a consultation process.
“This is not a decision we have taken lightly, and will mean the loss of some very talented colleagues who have contributed significantly to the success of the business.
“However, the actions we are taking now will allow us to achieve our goal of building an outstanding asset manager, with a focus on our clients, building innovative products and enhancing our investment capabilities,” he added.
Nervous industry
The duo of announcements follows a report by the Financial Times that Gam Investments is looking to axe hundreds of jobs over the next couple of years.
The embattled asset manager has struggled to emerge from the dark cloud emanating from its sacking of star fund manager Tim Haywood.
With a UK general election on 12 December and the ever lingering spectre that is Brexit continuing to hover over everyone’s heads, there is a risk that these announcements are just the tip of the iceberg.
