Aviva Investors is to cut 6 per cent of its global workforce.
The cuts will amount to around 60 jobs, according to an Aviva Investors spokesman. However, there are currently no plans to cull any of the firm’s funds as part of the review.
Aviva Investors says the redundancies are being made to prepare the business for the arrival of new chief executive Euan Munro in January 2014.
A statement from Aviva Investors says: “We have been reviewing our strategy so that we build a more vibrant business and lay the groundwork from which Euan Munro can grow the business.
“At the heart of this will be a focus on offering investment propositions which deliver income with low volatility. Our key objective is to significantly improve profitability by focusing on capabilities and propositions that build on our heritage in managing long-term savings.
”To achieve this, there are certain changes we need to make to our products and structure. In light of this, we have had to give the difficult message to some of our colleagues that they will be leaving the business and we have spoken to those affected.”
Hargreaves Lansdown head of investment research Mark Dampier says: “Thirty years ago, investment groups did everything but now platforms do a lot of the work. This move by Aviva strikes me as the continuation of a shrinking market. Most of these companies are not terribly efficient.”
Chelsea Financial Services managing director Darius McDermott says: “It is the first time I have heard of cutting jobs before someone’s arrival.”