Investment manager

Investment manager Janus Henderson set to cut 100 jobs

Investment manager Janus Henderson will cut staff by up to 5% as part of cost-cutting efforts under new chief executive Ali Dibadj.

Staff will be officially notified of the job losses on October 18, according to people familiar with the details, with 100 of the company’s more than 2,000 employees expected to be affected.

“Janus Henderson confirms that he will seek to reduce operating costs to reflect the impact of volatile markets and to focus more on future business growth opportunities. The reduction will include both non-compensation areas and downsizing this year,” the company said.

“While most roles are not impacted, we expect a reduction of no more than 5% in our total global employee base,” he added.

Janus Henderson, which was formed by the merger of Janus Capital and Henderson in 2017, has significant operations in the UK and the US, but is headquartered in the City of London. The company’s assets under management fell 17% to $299.7 billion in the second quarter, amid volatile markets and customers withdrawing cash.

Activist investor Trian Fund Management, led by Nelson Peltz, has disclosed its stake in the company in 2020. Peltz served on Janus Henderson’s board alongside Trian co-founder Ed Garden earlier this year.

Peltz has been a strong supporter of consolidation in the asset management industry since going public with his 10% stake in Janus and rival Invesco two years ago.

“[Janus Henderson] tried to cut costs without considering headcount, but it didn’t bring the savings they needed,” said someone close to the company. “Ali [Dibadj, chief executive] has been in the job for three months now and has had time to assess management.

“It won’t be the top performing fund managers going, it will be where there are duplications or where there is a distinct lack of momentum for the business,” they added.

Janus Henderson’s share price has fallen 50% so far this year, in response to the darkening economic outlook and continued pressure from the rise of cheap passive investment products that compete with managers traditional assets.

Investors are worried about rising costs in the industry, especially as inflation hits multi-decade highs on both sides of the Atlantic.

Other fund groups are also cutting costs. Jupiter Asset Management has begun a job-loss restructuring under new chief executive Matthew Beesley, after successive quarters of clients withdrawing their money. He announced he would cut up to 80 roles.

David McCann, an analyst at Numis, said asset managers at all levels were under pressure from weak markets and client exits. “Passives also take a bigger share of flows. Basically, if profits are under pressure, you either increase or reduce costs. Cost reduction is more in the control of the business, especially in the short term,” he said.