Jupiter is planning on making up to 90 staff redundant to position the business for growth following a “challenging year” in which it saw billions of pounds walk out the door and senior employees exit.
The FTSE 250 fund group has already begun a consultation programme which will see as many as 90 roles being cut from the business over a six-month period.
Jupiter did not indicate which areas of the business would be impacted. Portfolio Adviser understands that three of the jobs at stake are from the fund management department though it is unclear whether any fund managers are on the chopping block.
The decision follows a widespread review of Jupiter’s operating model and resourcing, after “a challenging year for markets and companies,” and is being done to “position the business for future growth,” a spokesperson said.
‘The decision to implement these changes was not taken lightly’
In a statement provided to Portfolio Adviser, chief executive Andrew Formica (pictured) said structural change was required for Jupiter to become a more “agile business” and “succeed in a rapidly changing environment”.
“The decision to implement these changes was not taken lightly, especially in this difficult environment, as it will unfortunately mean some roles will no longer be required,” Formica said.
“We understand the impact this uncertainty will have on our staff and will provide as much guidance and support as we can throughout this process.”
Jupiter shed £2bn in assets and saw profits halve over the first six months of 2020 as the coronavirus crisis ravaged markets.
Redemptions did not let up in Q3 after it acquired Merian Global Investors, as clients pulled £1bn from the latter’s funds, offsetting the minimal positive flows into Jupiter’s own funds.
During the turbulent year a number of senior fund managers departed, including Jupiter Absolute Return manager James Clunie, whose fund dwindled from £1.2bn to £180.4m over the period, and UK Growth manager Steve Davies.
A number of Merian’s managers and salesforce have left before and after its union with Jupiter, including Lloyd Harris’ corporate bond team and distribution boss Simon Smith.
More recently, Jupiter ESG frontman Charlie Thomas left to join Edentree as its CIO.
