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F&C to axe up to 99 jobs in £15m cost-saving programme

F&C Asset Management is to cut between 60 -99 jobs as it looks to cut costs by £15 million or 10 per cent of its cost base.

In a market update this morning the firm announced that it would be looking to maximise operational efficiencies and trim back to “reflect lower market levels and the weaker operating environment.”

A 30-day employee consultation to review several business areas is already underway and final figures of redundancies are expected to be confirmed upon completion.

According to F&C spokesman Jason Hollands, the cuts will primarily affect support staff with minimal impact on front-line fund managers and no expected impact on retail funds and investment trust management.

The cost-cutting plans follow those announced in the firm’s interim results in August which announced annual savings of £12m, the benefits of which are expected to be felt in 2009.

F&C chief executive officer Alain Grisay said: “In order to address the downward pressure on revenues and margins, we are undertaking a targeted cost reduction programme which both reflects this and the economies derived from our investment in new systems and back office consolidation projects. These actions are necessary to ensure that we have a cost base that is appropriate for these tougher trading conditions.’”


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