British fund manager Schroders is set to reduce its workforce size by approximately 3%, Bloomberg reported.
This development is said to be part of the company’s move to stimulate growth under the leadership of new CEO Richard Oldfield.
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The cuts, which will affect around 200 jobs primarily in the technology sector, signify one of the first significant shifts implemented by Oldfield since he succeeded former CEO Peter Harrison in November.
“Our priority is to reposition the business at pace, as we transition to growth,” a company spokesperson said.
The decision to reduce staff numbers is aimed at improving “delivery and ensure we are well-placed to meet our 2025 objectives, which are centred on reinforcing our active investment proposition,” the spokesperson added.
With assets under management amounting to £774bn ($947bn) as of 30 June, Schroders is taking decisive action to address the challenges it faces.
Bloomberg also highlighted that the firm has been under scrutiny for its relatively high cost base and lagging organic growth, particularly as the industry contends with a shift in investor preference towards lower-cost passive funds.
In November, the fund manager introduced a new Group Executive Committee (ExCo), led by Oldfield in his bid to drive the company’s growth after underwhelming earnings and client departures.
Oldfield, who replaced Peter Harrison, reduced the executive committee headcount from 23 to nine members.
Subsequently in December, reports of Schroders exploring the sale of its Indonesian business, which manages approximately $4bn in assets, surfaced.
The move is said to be part of Oldfield’s strategy to shed underperforming operations.
