Schroders to Lay Off 200 Jobs in Technology Sector to Foster Growth

– Schroders Plc plans to cut 200 jobs, about 3% of its workforce. – Layoffs will primarily be in technology, as directed by new CEO Richard Oldfield. – The firm’s share price has fallen by around 50% since 2021 due to high costs and slow growth. – Other firms like BlackRock are also laying off staff amid industry challenges.

Key Highlights
– Schroders Plc to lay off 3% of its workforce, approximately 200 jobs.
– Layoffs primarily in the technology sector, part of new CEO Richard Oldfield’s changes.
– Company aims to improve its active investment strategy and meet 2025 objectives.
– Schroders’ share price has decreased by roughly 50% since 2021.
– Other firms, including BlackRock, also reducing workforce.

Schroders’ Workforce Reduction
In a move aimed at reviving growth, the United Kingdom’s largest asset manager, Schroders Plc, intends to reduce its workforce by about 3 percent, equating to approximately 200 positions. This decision follows the appointment of Richard Oldfield as the new Chief Executive Officer, succeeding Peter Harrison in November 2024.

Focus on Technology Jobs
Most of the layoffs will affect the technology department as part of a significant restructuring initiative led by the new CEO. “Our priority is to reposition the business at pace, as we transition to growth,” stated a spokesperson for the London-based firm, as reported by Bloomberg.

Strategic Goals for Growth
As of June 30, Schroders managed assets totaling around £774 billion (approximately $947 billion). The job cuts are intended to enhance service delivery and align the firm better to reach its objectives for 2025, which emphasize strengthening its active investment proposition.

Market Pressures
Schroders has experienced a notable decline in share price, dropping nearly 50 percent since its peak in 2021. The company has faced scrutiny over its high cost structure and slow organic growth, reflecting broader industry challenges as investors increasingly switch to lower-cost passive funds.

Wider Industry Layoffs
Several firms within the financial sector have implemented layoffs in recent months as part of a broader trend. For instance, BlackRock recently communicated to its staff that approximately 1 percent of its workforce would be cut, which translates to around 200 jobs. “The cuts are part of BlackRock’s efforts to realign its resources with the firm’s strategy… This is never easy,“ stated BlackRock President Rob Kapito.

Conclusion
Schroders is undertaking substantial layoffs with a strong focus on the technology workforce to foster growth, under the leadership of new CEO Richard Oldfield. These measures are crucial as the firm navigates declining market performance and competition from the passive investment sector. Similar workforce reductions in the industry underscore the ongoing challenges facing traditional asset managers.

Title
Schroders to Lay Off 200 Jobs in Technology Sector to Foster Growth

Schroders Plc is strategically laying off 3% of its workforce, focusing on the technology sector, under the guidance of new CEO Richard Oldfield. This initiative aims to rejuvenate the firm’s growth trajectory amid significant market pressures, while aligning resources with their 2025 objectives. The situation reflects broader challenges within the industry as asset managers contend with declining performance and an influx of passive investment alternatives.

Original Source: www.livemint.com