About 50 Investec employees will be affected by the closure of its robo-advice business, with a consultation expected to begin in the next few days, the investment firm has stated.
Yesterday (May 17) Investec announced the closure of Click & Invest after two years of losses, citing a low appetite for the service and a market "growing at a much slower rate than expected".
The company has taken a write-down of £6m on the capitalised value of the software operated by Click and Invest, taking total losses to about £32m in two years.
The company has now confirmed an estimated 50 staff will be impacted by the closure, with a spokesperson promising the consultation period will be "started and conducted in the right way" but unable to comment on whether it will involve redundancies or relocation to another area of the business.
Investec said: "We fully appreciate that this announcement will be of real sadness to both clients and staff of Investec Click & Invest.
"Our prime concerns from this point are to minimise disruption for clients and ensure that employees are treated with respect and fairness."
Over the next 90 days clients of Click & Invest can either sell their investments and withdraw money in cash, transfer to another provider of the client's choice or transfer our in their name.
During the transition period Click & Invest's investment managers will continue to manage client money and the management fee will be suspended.
Investec declined to disclose the number of clients currently using its Click & Invest service.
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