Money managers turn to job cuts to steady ship
The Pensions & Investments article, "Money managers turn to job cuts to steady ship," quoted Russell Reynolds Associates Consultant Debra Brown, in which she offers her thoughts on the job cuts being made in the asset management industry. The article is excerpted below.
Faced with the weight of fee pressures and industry consolidation, many money managers are quietly cutting staff, either in a pre-emptive attempt to buckle down against headwinds and shift their business focus or more urgent cuts out of necessity, sources said.
While one recruiter shared that she has not seen widespread layoffs at money managers, "there have been a number of organizations that have come up and are doing this. And some are doing it discreetly," said Debra "Deb" Brown, a senior member of the investment management practice at Russell Reynolds Associates Inc., New York.
Generally speaking, however, she said the asset management industry has been resilient despite headwinds that could drag on costs for firms.
Still, "There is some cutting going on in underperforming active strategies," Ms. Brown said, later adding: "Where you've got a dependence on active strategies, yes, (money managers) are prudent on how they can improve the economics."
Ms. Brown also noted that cuts aren't always indicative of "an overall contraction of the firm," but a reallocation of resources.
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