St. James’s Place (SJP) is planning to cut 500 roles across the central functions of the business as part of its cost reduction plans announced in its half year results this July.
The cuts will exclude SJP’s Partnership, its network of about 2,500 financial advice businesses with 4,800 in advisers and staff. SJP did not deny the news when contacted by Portfolio Adviser.
See also: St. James’s Place discusses ‘future strategic focus’ in H1 results
In July, SJP announced it would run a cost reduction programme aiming to save £100m per year by 2027, resulting in pre-tax savings of 15% per annum. The firm expects net savings to reach near £500m by 2030.
“At our half year results in July, we committed to saving £100m per year from the addressable cost base by 2027,” SJP said in a statement.
“Our cost reduction plans are focused on simplification and standardisation of processes within the business, but a programme of this size and scale will inevitably impact colleagues. We have now begun consulting with colleagues to share our proposal for how this might impact roles, the outcome of which will not be known until next year. In the meantime, we are fully committed to supporting all potentially impacted colleagues and to keeping them fully updated on key decisions and developments.”
In the first half of its fiscal year, SJP saw net inflows of £1.9bn, which was a 44.1% decline from the first half of 2023.
