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Jupiter to cut up to 16 per cent of staff

Jupiter to cut up to 16 per cent of staff

Jupiter is proposing to make up to 90 of its staff redundant in a bid to become "more agile".

In an all-staff email sent by chief executive Andrew Formica, and seen by FTAdviser, he wrote: “As we look to the year ahead, our focus and attention will need to pivot from those internal activities which have been vital to rebuilding our foundations, to those activities that make us a more agile, outwardly focused business.

"To make strides towards this goal, our energy and focus this year will turn to growth areas that can attract net inflows into our funds and generate the revenues and profits from which we can continue to invest.

"Inevitably as we reshape the business there will be some changes that mean some colleagues roles will no longer be required. We do not take these decisions lightly given the market conditions we are operating under.”

A spokesman for Jupiter confirmed the company is looking to make up to 90 roles redundant, with the consultation process having already begun with those employees that are affected. 

The redundancies will happen over a period of six months. FTAdviser understands that just three of the ninety roles under threat directly relate to fund management. 

FTAdviser understands the decision was made following a review, and after a year in which several fund management staff departed, and funds were closed or lost to rivals. Jupiter saw almost £3bn of outflows in the first nine months of 2020, and has also been integrating the Merian Global Investors teams following its acquisition of the business earlier last year.

Most recently, Charlie Thomas, the firm’s head of sustainability, departed for EdenTree Investment Management last week.

In December it was confirmed the board of the £173m Jupiter US Smaller Companies trust was moving the mandate to Brown Advisory following the retirement of Jupiter’s Robert Siddles. A number of fund manager and sales staff also left the combined company when the merger completed in 2020. 

In early December it was confirmed that the long-serving fund manager James Clunie, who ran an Absolute Return fund, and Alastair Gunn, who ran a pair of income funds, were leaving the firm

In a statement to FTAdviser Mr Formica said: "To succeed in a rapidly changing environment, it is important to focus on the activities which enable us to best serve our clients.

"We have an unwavering commitment to achieving this by continually striving to improve the way in which we operate.

"Jupiter has what it takes to meet the challenges ahead, and to make the most of opportunities to generate growth in a competitive landscape. To do this we must be an agile business, and these structural changes allow us to continue to work towards delivering on our strategic goals."

david.thorpe@ft.com