Hundreds of jobs at GAM are reportedly at risk – as the Swiss asset manager's new CEO seeks more dramatic cost cuts.
The Zurich-based asset manager's new CEO, Peter Sanderson, is weighing up cutting hundreds more jobs, according to «Financial Times» (behind paywall), which cited sources familiar with the plans. The job cuts will center on back-office roles, the British broadsheet reported.
The report translates to more turmoil for GAM, which is still reeling from an 18-month-long scandal surrounding its erstwhile flagship product. The company already cut roughly ten percent of its staff last year, in an emergency measure under stand-in CEO David Jacob. Sanderson flagged more spending cuts seven weeks ago, after a torpid third-quarter.
Habitue of Deal Talk
The fund house, which employs 863 staff currently, is on track for at least 40 million francs ($40 million) in spending cuts by year-end, and said the bulk of its current efforts will be felt next year. GAM will further streamline itself for savings next year and in 2021, it said. The company didn't detail where it was looking to cut.
GAM is desperately seeking normalization after spending the last year winding down a key bond fund. It swung to a net loss last year, scrapping its dividend and slashing spending in response. The company also regularly draws interest from competitors in the asset management industry, as finews.com reported.
