AMP Australia is reportedly preparing to slash its headcount by up to 20% over the next year as it looks to restructure business under a new executive leadership team.
The Australian wealth manager AMP hired ex-Sunsuper CEO Scott Hartley as head of AMP Australia last December, replacing Alex Wade who resigned following misconduct allegations.
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AMP established AMP Australia in 2019, consolidating its domestic wealth management and banking units. The unit specialises in superannuation, banking and wealth management services.
Hartley is looking to create a ‘lean, efficient and competitive’ business and brought together a new executive team last month to accelerate the firm’s restructuring plans, reported The Sydney Morning Herald.
Job cuts are part of this plan and the company aims to save $300m under its three-year cost savings project, which is set to conclude next year.
Very little is known about teams that would be affected by the move but layoff would begin in mid-June, the publication quoted a source privy to the development as saying.
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By GlobalData“Morale is at an all-time low as staff either wait for redundancies or are resigning in droves in disgust at the lack of changes in the company and additional work due to large restructures and no pay rises,” said the sourced.
An AMP spokesperson said the group had informed the staff about the changes to the business from January.
The person added that Hartley’s team is currently ‘working through the details’ which would ‘unfortunately’ include redundancies in the levels below the executive leadership group.
AMP spokesman told the publication: “We are very conscious of the impact that this has on our people, these types of changes are always challenging for all of those involved and impacted – and we will provide our people with all the support they need through this change.
“We are working as quickly as possible to give our people certainty.”
Other developments at AMP
Last month, AMP ended its months-long talks with Ares Management for the potential sale of AMP Capital’s private markets business and instead decided to pursue a demerger.
Ares, which offered a non-binding indicative proposal for AMP, later backed out of the offer citing the declining performance of AMP’s wealth unit.
In March this year, AMP Capital agreed to offload the global equities business of its asset management unit to Canadian investment manager Fiera Capital.
