Lazard is set to shed up to 7% of its jobs in its asset management arm and shut down some investment funds by the end of the year, following a review of the business.
The New York-based fund house informed employees about the cutbacks last week, a source told Bloomberg. The unit had 850 employees as of June 30, meaning a 7% reduction could bring about 60 firings, with both investment and non-investment roles to be affected.
The cuts follow an internal review led by Ashish Bhutani, chief executive of Lazard Asset Management (LAM). LAM has experienced an outflow of assets from its funds and increasingly fierce competition from lower-cost index funds.
While Lazard takes a look at the business's direction annually, this year's review ended with the firm making steeper cuts than usual. Lazard is culling funds in several regions, and across multiple asset classes.
The moves also comes as firms are under pressure as investors have shifted trillions of dollars into low-cost funds that track popular indexes, pressuring many managers to slash fees and exit strategies that have struggled to attract flows
It reported a 2.6% drop in assets under management in August from July. Total AuM came in at $228.8bn, down from $234.8bn in July.
LAM, which operates in 16 countries and is part of NYSE-listed Lazard Ltd. The news was first reported by the Wall Street Journal.