Investec today confirmed plans to cut 210 jobs in its London office as it warned profit could fall by up to 60 per cent in the first half of the year.
The wealth manager and banking group said the job cuts — which equate to roughly 13 per cent of its UK headcount — were part of an ongoing simplification process.
It came as Investec said adjusted operating profit for the six months to the end of September was expected to be between 50 and 60 per cent behind the £175.6m posted in the same period last year.
It forecast adjusted earnings per share of between 10.5p and 8.3p — marking a fall of 53 to 63 per cent on last year.
The Anglo-South African company said the downbeat forecasts were the result of reduced economic activity and market volatility sparked by the Covid-19 outbreak.
It also blamed lower average interest rates, reduced client activity and a 22 per cent depreciation of the rand against sterling.
“The business has proved resilient in a period characterised by Covid-19 stringent lockdowns in the first quarter, followed by a gradual reopening of the economies,” said chief executive Fani Titi.
“Severe GDP contractions and volatile financial markets negatively impacted revenues.”
Investec said it would not pay an interim dividend “in light of the prevailing guidance from both the South African and UK regulators”.