Fund managers prepare second swing of the axe
The asset management industry looks set for a second round of job cuts as Schroders and Capital Group, which together kicked off the first series of redundancies at the end of last year, outlined further plans to slash staff.
Employees at Schroders were yesterday told to expect 100 jobs to go from its global workforce of 3,000, with around 50 of these from the London office, according to a source close to the UK fund manager.
A spokeswoman from Schroders would not confirm the fresh number of jobs at risk, but said: "As we said at the time of our preliminary results announcement on February 12, 2009, we are reviewing our cost base to align it to current market conditions.
"This process includes a review of headcount as well as non-compensation costs."
In the US, Capital Group, which until October had avoided cutting any employees during its 75-year history, told staff last week it would cut "some" of its existing 8,900 staff by the end of its fiscal year in June.
These firms were two of the first asset managers to cut staff in October last year, swiftly followed by Henderson Global Investors, Legg Mason and Fidelity, among others. After redundancies at several fund managers, further staff cuts had appeared to be on hold.
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