Schroders is expected to cut between 50 to 100 jobs at its Luxembourg office as part of a restructuring of the business, a trade union official told the Luxembourg Times.
The listed investment house has agreed a social plan with Luxembourg's unions for the affected employees. The redundancies, which represent a significant portion of the circa 300 staff members in Luxembourg, are not expected to take place at once.
"There are actually roles at risk because of a restructuring decision in the UK," Carla Valente, legal advisor at trade union Aleba, told the local news outlet.
There are actually roles at risk because of a restructuring decision in the UK"
The dismissals will happen in the final quarter of this year or at the beginning of 2020 once the new business strategy is in place.
As investment companies face rising costs and lower fee revenue the number of workers in the global fund management industry is predicted to fall for the first time in a decade.
Several global asset managers — including BlackRock, Axa Investment Managers, GAM and AQR — have announced large-scale redundancies in recent months. Maarten Slendebroek, the outgoing chief executive of Jupiter, said this month that the company had cut 5 per cent of staff, or about 25 jobs, to contain rising costs.
The sector's total assets are expected to shrink for the first year since 2010, according to Casey Quirk, the Deloitte consultancy, as risk-averse savers move into cash following a tough year in the markets, the FT reports.
Based on public disclosures, Casey Quirk estimates the number of workers in the global asset management industry will drop 0.6 per cent this year.