AMP is set to make further sweeping changes to its wealth management division and fund manager AMP Capital, with the wealth manager confirming redundancies will take place to “centralise business services”.
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.”
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