St James’s Place has made the “tough decision” to axe 200 roles from its workforce following a review of its “strategic priorities”.
A statement from SJP chief executive Andrew Croft (pictured) sent to Portfolio Adviser confirmed the swathe of redundancies, representing 10% of UK headcount, as the UK’s largest wealth manager looks to simplify its operations.
Cuts will be made across the business and SJP plans on redeploying staffers into other roles “where their skills are aligned” if possible.
The planned cuts will not affect SJP’s army of advisers who are employees of its Partner Practices which are established as separate legal entities under the SJP umbrella.
‘This was a very tough decision for us to make’
Croft said a review of SJP’s “strategic priorities,” including developing its technology proposition and revamping its investment management approach, has been in motion since the start of last year.
While the wealth manager had made headway on these objectives, the “rapid pace of change” brought about by the Covid pandemic “has also emphasised the need for us to really push ahead with our plans,” Croft said.
“Over the coming months we’ll be simplifying where we can, removing duplication of work, and stopping those tasks we no longer require,” Croft informed staffers.
“And unfortunately, this also means a loss of around 200 roles from across the SJP business. Wherever possible in the process we’ll look to redeploy people to roles where their skills are aligned. And where this isn’t possible, we’ll provide support, guidance, and people to talk to.
“This was a very tough decision for us to make, but one that’s needed for SJP to continue to be successful in the months, years, and decades ahead.”
Redundancies not linked to activist shareholder complaints
Portfolio Adviser understands the redundancies were not made in response to activist shareholder Primestone Capital’s calls for SJP to overhaul its cost base and address its “high cost culture”.
Primestone excoriated SJP in a letter to shareholders last October, accusing the wealth manager of having a “bloated organisational structure” and “excessive” hiring and pay practices which destroyed shareholder value.
See also: SJP finds defenders as it stands accused of letting shareholders down
Months later SJP agreed to review its costs after a “productive and constructive dialogue” with Primestone.
SJP reported net inflows into the business fell by a third during the third quarter. Its closing funds under management at the end of September were £118.7bn, recovering from the Covid hit which took assets down from £117bn to £115.7bn over the first half of the year.
SJP told Portfolio Adviser in November it had continued recruiting during the pandemic though it temporarily eased up on trying to recruit new members for its adviser network early in the year.
See also: How has the Covid crisis impacted recruitment at DFMs?
