Schroders wealth arm to cull one in four jobs

SCHRODERS Personal Wealth is slashing nearly a quarter of its workforce in a major restructuring under new boss Mark Duckworth.

The financial planning firm – a joint venture between FTSE 100 firms Schroders and Lloyds Banking Group–is cutting about 200 jobs out of 850.

The cull comes just a year and a half after the business launched. It is understood the axe will affect financial advisers as well as support staff.

Duckworth was appointed chief executive in September, taking over from Peter Hetherington, former boss of spread-betting company IG Group, who stayed in post for just eight months.

The company, in which Schroders has a 49.9 per cent stake, was launched as a way to offer cheaper financial advice.

Banks are keen to expand their wealth management services to bring in fees as profits from mortgages and other loans are hit by low interest rates.

Mark Brown, general secretary of BTU, the union which represents t he staff, said :‘ Despite the fact that wealth management is going to be one of the future growth areas, Schroders has announced swingeing cuts to its business – and at a time when it’s been recruiting staff across the business over the last few months.’

Schroders Personal Wealth said it is ‘putting new processes and structures in place using a more focused team, with clearer individual responsibilities’.