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'People impacts': AMP gears up for mass redundancies

Jessica Yun
·2-min read
(Source: Getty)
(Source: Getty)

Several employees from AMP are expected to be made redundant, with workers from the wealth giant’s wealth management division and AMP Capital’s asset management department in the firing line.

AMP CEO Francesco De Ferrari told company employees in an email that each executive in AMP’s leadership team was scrutinising its workforce for “efficiency opportunities,” the AFR reported.

Three different corporate function teams across the AMP Capital, AMP Australia and AMP Limited businesses are expected to be consolidated as it is causing “significant duplication and increased cost – and often it's AMP doing business with ourselves”, the CEO said.

“We're going to establish a single set of business services to deliver cost-effective, high-quality support in the areas of finance, legal, risk and people.

“The new, combined business services teams will have KPIs aligned to the performance of the business units, keeping focus on client outcomes,” he said.

A range of measures would be considered, and this “unfortunately ... will lead to people impacts”.

"I recognise that the last few months have seen significant change for the AMP Capital teams. Many of you have expressed your feedback directly to me, and I thank you for this," De Ferrari said.

"I understand that the changes announced today are a lot to take in and will prompt questions and I encourage you to speak with your leadership team member or people leader if you have any questions or feedback."

A “portfolio review” of AMP’s various businesses are currently underway, launched by AMP’s new chairman, Debra Hazelton.

An AMP spokesperson confirmed the cuts with Yahoo Finance.

“AMP has made changes to its teams that will centralise some business services.

“Our focus is on continuing to reshape the organisation to drive efficiency and support the delivery of AMP’s strategy to become a simpler, client-led organisation,” the spokesperson said.

An insider source told AFR that redundancies would reach up to 20 per cent, but the AMP spokesperson denied the figure and said there was no set number.

AMP’s leadership has been shaking up since the Banking Royal Commission.

Last month, AMP lost three of its most senior leaders, with the resignation of AMP chairman David Murray, the demotion of AMP Capital chief Boe Pahari and AMP non-executive board director John Fraser’s resignation.

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