American money manager Legg Mason has said that reorganization steps will cost it a total of US$20 million for severance and other expenses in the quarters ending in 30 September and 31 December.
Expenses tied to closing and reorganizing businesses will lead to costs of about US$10 million each of the last two quarters.
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The reorganization includes winding down of Legg Mason’s emerging-markets equity unit in London and Hong Kong, Esemplia Emerging Markets, and downsizing of the sales office in Toronto, said Mary Athridge, a spokeswoman for Legg Mason.
Athridge added that about 15 positions will be eliminated in Toronto as Legg transfers some distribution functions to its affiliates, including Brandywine Global.
The firm plans to use some of the savings to expand the distribution of its financial products.
The company expects to see an additional US$2.5 million a quarter in pre-tax earnings or US$10 million a year, starting with the quarter ending March 2014.
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