L&G targets operating profits between £500m and £600m by 2028 for its asset management business. Credit: Dreaming Poet/Shutterstock.

Financial services company Legal & General (L&G) plans to cut jobs within its newly asset management division, following restricting, aiming to enhance returns and reduce costs, reported Financial Times (FT).

The move could see up to 20 investment roles and several support positions made redundant, according to people close to the process.

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Employing more than 12,000 people, L&G is in the midst of restructuring initiated in June 2024 by CEO António Simões.

A unified asset management division was formed by merging UK’s asset manager Legal & General Investment Management with Legal & General Capital, which focuses on alternative assets like infrastructure and clean energy.

In June 2024, Simões said that there were ways to avoid duplicate costs between the two units, but this wouldn’t involve cutting jobs. 

At that time, Simões said: “This is a growth plan and we are investing to expand the business, so this is not about redundancies.”

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L&G targets operating profits between £500m and £600m by 2028 for its asset management business.

The company, which managing assets worth over £1.1tn, also plans to grow its private markets portfolio from £52bn to £85bn.

The restructuring led to the departure of the investment business head, Michelle Scrimgeour.

As part of the changes, L&G sold its housebuilder Cala Homes for over £1bn to Sixth Street Partners and Patron Capital in the same month.

Legal & General told was quoted by the publication as saying: “As we set out in our capital markets event in June, asset management is central to our strategy and a future growth engine of the business.

“We continuously assess and ensure we allocate our resource appropriately, ensuring the business is positioned for growth to deliver for our clients and to meet the financial targets we set out in June.”