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UK-based wealth manager St James’s Place is planning to cut about 500 jobs in an attempt to reduce costs under chief executive Mark FitzPatrick.
The company, which has the largest financial advice network in the UK, is undertaking a consultation that is set to run until early next year to axe about a sixth of SJP’s 3,200 staff, according to an internal memo confirmed by SJP on Monday.
The move is part of a broader restructuring unveiled in July by FitzPatrick designed to remove £100mn of expenses a year from the business by 2027. SJP said at the time that it was targeting cumulative savings of about £500mn by 2030, half of which would be reinvested in the company.
SJP, which has more than £184bn in assets under management, said on Monday that the job cuts related to employees rather than advisers who are affiliated with the wealth manager.
The restructuring follows a difficult period for SJP, whose fees have come under scrutiny due to new UK regulations aimed at ensuring customers receive a fair deal.
SJP said in July 2023 it would cut fees, just as the new consumer duty rules came into force, and made more drastic changes to its charging structure months later.
SJP was also forced to take a £426mn provision in February to cover potential refunds for customers who claimed they had not received sufficient financial advice.
However, shares have rebounded since FitzPatrick announced his turnaround plan in July, rising from above £5 to £9, paving the way for SJP to rejoin the FTSE 100.
SJP said: “Our cost reduction plans are focused on simplification and standardisation of processes within the business, but a programme of this size and scale will inevitably impact colleagues.
“We have now begun consulting with colleagues to share our proposal for how this might impact roles, the outcome of which will not be known until next year. In the meantime, we are fully committed to supporting all potentially impacted colleagues and to keeping them fully updated on key decisions and developments.” The story was first reported by Citywire.
FitzPatrick, who joined from the insurer Prudential, is also keen to overhaul SJP’s image, which has come under the spotlight in the past for its sales-driven culture and lavish rewards for financial advisers.