American investment manager Invesco has planned 1,300 redundancies following the takeover of OppenheimerFunds. The job cuts constitute 12% of the combined workforce.
According to 2018 estimates, the affected employees are said to constitute 12% of the combined workforce of Invesco and OppenheimerFunds.
Around 850 layoffs were carried out in an office of OppenheimerFunds in Denver, which dealt with administrative functions the Financial Times reported.
The report further said that the downsizing exercise “largely avoided the investment teams”, with nearly a dozen investing jobs from the combined group slashed.
Among the exits include OppenheimerFunds head of trading Keith Spencer. OppenheimerFunds CIO Krishna Memani will now serve as vice-chairman of investment at Invesco.
Commenting on the layoffs, Invesco CEO Martin Flanagan told the FT: “It was uncomfortable for everybody.
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“But we feel very strongly that we have the best talent.”
Flanagan said the firm is on track to cut nearly $400m in costs by this year-end.
Besides, he unveiled that Invesco intends to market OppenheimerFunds portfolios to institutional and international clients. These portfolios served affluent investors in the US until now.
Last October, Invesco inked an agreement to purchase OppenheimerFunds from Massachusetts Mutual Life Insurance in an all-stock deal valued at $5.7bn.
The deal was completed this May and increased Invesco’s assets under management to $1.2 trillion. With the transaction, Invesco became the sixth-largest retail investment manager in the US.
The job cut announcement comes five months after Invesco revealed that it will add 500 jobs to its global headquarters in Atlanta as well as invest $70m to expand the business.