Gartmore Group, the embattled hedge fund manager fighting for its survival, will cut more than 10% of its staff in Britain as part of its cost-cutting efforts.
The firm, battered by the loss of top hedge fund manager Roger Guy, has laid of 35 employees, mostly members of its back office staff. The Financial Times reports that the firm, which is seeking a buyer or merger partner, does not plan any further job cuts at the moment.
When Gartmore put itself up for sale last month, CEO Jeffrey Meyer pledged to cut costs by £10 million. Investors in the firm are pushing for a deal sooner rather than later, according to Reuters, with institutional shareholders telling Gartmore "we want the company to be sold as quickly as possible," one such investor said.
Another offered that Gartmore "is running the risk of greater client outflows and poor morale, so finding a new home would be the best option."
The firm did receive something of a shot in the arm last week, when its £120 million European Investment Trust's board said it would stick with Gartmore. The fund is currently managed by Guy, but the board said that manager-in-waiting John Bennett "is a high-quality replacement."
The decision to stick with Gartmore did come with a price for the firm: The fund's board negotiated a reduced notice period to cancel its contract of three months.