Monday, 26 September 2016
Last updated 21 min ago
Sep 30 2011 | 11:42am ET
In the wake of a 8.5% asset haircut, the Man Group has doubled the number of jobs it plans to cut as it integrates its business with that of GLG Partners, acquired last year.
The world's largest publicly-listed hedge fund manager, which announced this weeks that assets had slumped by US$6 billion in the third quarter, including $2.6 billion in redemptions, plans to lay of 400 people, or 20% of its staff, according to published reports. At the time of its merger with GLG last year, Man had predicted closer to 200 redundancies.
The cost-cutting measure will hit all aspects of Man's business save fund management and research, with fund administration and sales hardest hit. The layoffs, already under way, will be completed by the first quarter of next year.
Some of the job cuts were made possible by an outsourcing deal with Citigroup, which will handle some administration and other back-office services, including information technology and valuation, for Man's hedge funds.
News of the higher number of layoffs was delivered to investors and shareholders by Emmanuel Roman, Man's chief operating officer and a former top GLG executive, who is handling the integration.