US-based asset management firm Legg Mason is set to slash 120 jobs in a cost-cutting drive.
The job cuts equate to 12% of the firm’s workforce.
“Today’s staff reductions reflect the necessity, in this evolving industry, to rethink how we deliver on our mission of investing to improve the lives of our clients and other stakeholders,” CEO Joseph Sullivan said in an internal memo sent to employees.
The move will impact staff in the firm’s fund administration, legal, finance and human resources departments.
Investment staff will not be affected.
Majority of the job cuts will be in the US. These include the firm’s Baltimore base, as well as New York and Stamford locations.
The remaining downsizing will be in Europe and Asia.
In addition, Legg Mason is streamlining its executive committee.
Under the plan, global head of marketing and communications Frances Cashman and head of business development Thomas Hoops will depart.
Also quitting are global head of affiliate strategic initiatives John Kenney and chief administration officer Ursula Schliessler.
The latest move comes shortly after Trian Fund Management CEO Nelson Peltz rejoined the Legg Mason board alongside Trian CIO Ed Garden.
Trian holds nearly 4.5% of Legg Mason’s outstanding stock.
For the fiscal year ended 31 March 2019, Legg Mason reported a net loss of $28.5m compared to a profit of $285.1m in the previous year.
The firm’s assets under management at the end of March 2019 totalled $758bn.