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Fund jobs at risk in market downturn

Fund management groups look set to cut jobs as the effect of the credit crisis takes its toll.

Threadneedle has confirmed it is reducing its cost base across the business due to the current market environment, with 75 to 85 jobs set to be lost.

Schroders, which employs around 1,250 staff in London, says it has reviewed staffing levels and a small number of jobs will be lost.

A spokeswoman says: “We have reviewed our cost base to ensure it is appropriate for current market conditions. Much of our cost base is compensation linked to revenues. We have also reviewed discretionary project spend, marketing travel and entertainment. As a result of this review, a small number of jobs have been affected.”

Rathbones is thought to be cutting sales staff although it refuses to comment.

Gartmore is also understood to be reviewing staff levels across the business but no one was available for comment.

Hargreaves Lansdown investment manager Ben Yearsley says: “It will happen but we may see a trickle down effect as some fund firms are still making money while others will have more staff to lose.”

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