St James’s Place, a leading UK wealth management firm, plans to cut 500 jobs next year as part of a £200 million cost-saving initiative aimed at streamlining operations and boosting profitability.
An internal memo revealed that the redundancies, expected in February, will affect around one-sixth of the company’s non-advisory staff. The firm employs 3,200 individuals in areas like administration and marketing. While details on which departments will face cuts remain unclear, financial advisers operating under the firm’s brand will not be impacted.
A company spokesperson explained, “Our cost reduction plans are focused on simplifying and standardizing processes, but a programme of this scale will inevitably impact colleagues.”
The company has begun consultations with employees to outline the potential impact and ensure affected staff are supported throughout the process. The final decisions on job cuts will be made next year.
The spokesperson added, “We are fully committed to keeping all colleagues updated on key developments and decisions during this process.”
Announced earlier this year, the cost-reduction initiative aims to slash annual expenses by £100 million over the next two years, contributing to a total savings target of £500 million by 2030. Half of the savings are expected to be reinvested into the business, with the long-term goal of doubling underlying cash profits by the decade’s end.
In addition to reducing costs, the firm is addressing its bundled fee structure, which has faced regulatory scrutiny. By modernizing its fee framework and improving operational efficiency, the company seeks to align with regulatory expectations while enhancing client offerings.
The firm is also working to address criticism over some underperforming funds and has recently closed three property funds due to low investor demand and lingering effects of the pandemic.
Despite these challenges, the company’s efforts to cut costs and attract strong inflows have boosted its share price. Industry analysts suggest this positions the firm for a potential return to the FTSE 100, signaling renewed investor confidence. This marks the company’s largest wave of job cuts since 2021 when it reduced its workforce by 10%, eliminating 200 positions.
For more latest news and update visit UK Profits.
