Man Group, the FTSE-listed hedge fund manager, is to cut 10 per cent of its workforce.
The move comes hard on the heels of the company’s takeover of rival London hedge fund GLG Partners – a deal that has catapulted the combined group into the top spot in the $1,700bn (£1,100bn) hedge fund industry as its largest player by both assets under management and employees.
According to a person familiar with the group’s plans, the cuts equate to 180-200 job losses over the next six months.
Redundancies have already begun: two of Man Group’s most senior salespeople, Martin Keller, the head of institutional sales, and John Bennett, the head of UK distribution, left the firm this month.
Further cuts in sales jobs are expected as the integration of Man with GLG progresses.
Man Group’s sales force is to be relocated to GLG’s Mayfair offices. The combined group will still report to Christopher Moller, Man’s existing global head of sales.
The company will also continue to maintain its Swiss sales force at its Pfäffikon office in the canton of Schwyz.
Compliance and regulatory jobs associated with GLG’s listing in New York are also expected to go.
Although it is not expected that cuts will be made to any trading positions, questions still remain over what will be done with funds in the combined group that overlap in terms of strategies.
“We have previously confirmed that GLG integration synergies are expected to annualise at about $50m and be delivered over the next 12 months,” Man said. “Some but not all of these savings will be headcount related.”
The company declined to comment further on specific numbers of jobs that could be cut.
Man Group shares rose 4.5p to 258.4p on the news.
The axing of jobs follows those at DE Shaw, the quantitative fund manager, which in September embarked upon a round of redundancies.
DE Shaw, one of the world’s biggest and most successful hedge fund managers, cut about 10 per cent of its workforce over a matter of days following one of its steepest bouts of investor redemptions.
Jobs were cut in its New York and London offices, with further redundancies across DE Shaw’s global operations.