ifa understands that no set number has been communicated for the redundancies, but media reports indicate that AMP may be aiming for workplace reductions as high as 20 per cent across AMP Capital and its Australian wealth management division.
“AMP has made changes to its teams that will centralise some business services,” a spokesperson told ifa sister title Investor Daily.
“Our focus is on continuing to reshape the organisation to drive efficiency and support the delivery of AMP’s strategy to become a simpler, client-led organisation.”
The redundancies are the latest reduction to AMP’s workforce, with a number of executives – including chairman David Murray – and portfolio managers leaving the business after a string of high-profile sexual harassment scandals and lawsuits from aggrieved current and former advisers.
ifa understands that corporate functions will also be streamlined, with three separate teams set to be combined into a single set of business services, while reporting lines will be simplified.
ifa understands that AMP remains committed to implementing CEO Francesco De Ferrari’s turnaround strategy despite news that the wealth giant had launched a portfolio review that could result in several of its businesses being sold off.
“The board believes that AMP has high-quality businesses with significant strategic value,” said chair Debra Hazelton at the announcement of the review.
“The board and management firmly believe in our existing strategy, including a repivot to private markets in AMP Capital and are confident that this will deliver long-term value for shareholders. However, we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner.”
AMP’s financial advisors have always been AMP’s sales channel, of course if you get rid of your sales channel you have to get rid of the support staff
If they get rid of the middle management leeches then great. Unfortunately previous redundancies at AMP have focused on getting rid of service and admin staff who actually understood how AMP’s broad range of products worked.
If it has such high quality businesses then restructuring management and getting them to work properly would have meant that they actually started performing.
They aren’t performing
Only 20%? Not a good time to be out looking for a job in this sector with AMP on the resume as your last employer.
Once again, the employees pay the price for sustained executive leadership incompetence.
Actually the Mum and Dad shareholders will pay Gerard. Feel sorry for them.
Useless AMP employees with say 10 years service might walk away with a years pay as a lump sum (+ tax breaks).
Many are on more than $100k. Never made any contribution to the business.
AMP have 5,778 staff x 20% to go = 1,155 Clowns to leave the Circus.
You do the math.
Just hope to goodness they exit the industry permanently.
No surprises here, AMP has been in a state of constant restructure since 2010.
It’s their form of a corporate strategy. New management move some hierarchies and people around and ‘shazam’ – all will be good. Oh,…wait…