Thursday 5 December 2019 1:03 pm

Asset manager Schroders cuts jobs in restructuring drive

Asset manager Schroders is embarking on a restructuring drive that will place more emphasis on growth areas including private assets and wealth management but will lead to job cuts.

The restructuring effort could lead to around 200 job cuts globally, Reuters reported, citing a source familiar with the matter. 

Read more: AJ Bell fears ‘domino effect’ after M&G fund suspension

Active investment managers have struggled to outperform markets in recent years, increasing pressure on them to lower their fees as more investors snub them in favour of cheaper index-tracker funds. 

“We have a number of initiatives across the Group to drive greater efficiencies and generate growth,” a Schroders spokesperson said. 

“This includes realigning our resources which allows us to continue investing where we see strategic growth opportunities”.

Read more: Portfolios of biggest asset managers ‘misaligned’ with climate targets

They added that the asset manager had also “undertaken a targeted restructuring of teams to enable people to step up and achieve their potential as part of their career development.”

Schroders shares were down 0.38 per cent at 3,189p in early afternoon trading.