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Layoffs: Asset manager Schroders to cut 3% tech workforce, aims to revive growth
Layoffs: Sources told Bloomberg that Schroders is cutting 3 per cent or 200 jobs, mostly in tech, as new CEO Richard Oldfield looks to revive the UK’s largest standalone asset manager.
Layoffs: The United Kingdom's biggest asset manager Schroders Plc plans to layoff as much as 3 per cent of its workforce, or 200 jobs, as new Chief Executive Officer Richard Oldfield looks to revive growth, according to a Bloomberg report on January 17 citing sources.
The source added that the layoffs would mostly be in technology and is one of the major changes being implemented by new CEO Oldfield, who took over from former and long-time chief Peter Harrison in November 2024, as per the report.
‘Priority is Growth’
“Our priority is to reposition the business at pace, as we transition to growth,” a spokesperson for the London-based firm said in a statement, Bloomberg added.
As of June 30, the nearly 220-year-old Schroders managed around £774 billion ($947 billion) of assets. The job cuts will help it “improve delivery and ensure we are well-placed to meet our 2025 objectives, which are centered on reinforcing our active investment proposition,” the spokesperson added.
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Stocks on the Down
Schroders' share price has sunk by around 50 per cent since its 2021 peak as it faced criticism for relatively high cost base and slower organic growth. The talk points also came amid wider woes facing traditional active fund managers as investors flock to lower-cost passive funds, the report noted.
Other firms in the industry have trimmed their workforces in recent months, including Wellington Management and Manulife Financial Corp. Earlier this month, BlackRock Inc. told employees it’s cutting about 1 per cent of its over 21,000 employees. This means around 200 jobs are on the chopping block.
“The cuts are part of BlackRock’s efforts to realign its resources with the firm’s strategy… As part of these firmwide efforts, we will be making changes today that will see approximately 1 per cent of our colleagues leave the firm… This is never easy,” BlackRock President Rob Kapito and COO Rob Goldstein told staff in a memo on January 8.
(With inputs from Bloomberg)
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First Published:17 Jan 2025, 06:35 AM IST
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