IGM Financial will record a $76-million restructuring charge in the second quarter for severance and other costs as it moves to “streamline” its operations and cut jobs to bring down costs.
The Winnipeg-based firm said last week that it’s addressing “duplication of roles” and looking to “enable partnerships” to operate more efficiently across its IG Wealth Management and Mackenzie Investments businesses. It also plans to reduce office space for IG Wealth Management as more advisors work remotely.
“With the widespread adoption of hybrid work and new technologies, people want more flexibility in how they work and live and how they interact with businesses,” president and CEO James O’Sullivan said in a statement.
The moves are expected to save the company about $48 million annually, IGM said, about half of which will be reinvested into businesses including IG Wealth and Mackenzie, and the other half used for “sustainable expense reduction.” The company didn’t say how many jobs are being eliminated.
Last month, Bloomberg reported that Mackenzie laid off senior executives — including Michael Schnitman, head of alternative investments, and Michael Cooke, head of ETFs — as part of a series of job cuts affecting approximately 50 people.
“We have demonstrated strong expense discipline in recent years, but these changes will further streamline our operations and structurally reduce our costs,” O’Sullivan said in the statement. “We will use the resulting savings to both reinvest in our future to accelerate growth and reduce expenses. This will help ensure our businesses continue to be competitive and sustainable.”
The company also said it’s modernizing its technology infrastructure, including retiring duplicate systems.