AMP slashes jobs to save business

AMP’s wealth management arm will launch a cost-cutting program and make sweeping redundancies across its workforce in a bid to turn the troubled business around.

While “Ms Fixit” Alexis George is yet to step into her new role as AMP Limited chief executive after leaving ANZ, AMP Australia – which is responsible for wealth management and superannuation – is already moving ahead with plans to make the business smaller and more efficient by cutting a significant chunk of its workforce.

“Scott Hartley was appointed AMP Australia CEO in January, and has been working through changes to ensure the business is sustainably competitive, and focused squarely on delivering for customers and members, and supporting our strong relationships with our adviser and broker partners,” an AMP spokesperson told IA.

“We are now working through the details of each AMP Australia business, including team structures in the levels below the leadership team and this will unfortunately involve impacts to some peoples’ roles.”

Media reports suggest that redundancies across the organisation may go as high as 20 per cent, though AMP has not confirmed a number, while the Finance Sector Union (FSU) declined to comment as AMP has not yet notified it of any redundancies.

The news comes as AMP Australia launches a significant executive restructure, with former Yellow Brick Road wealth management CEO Matt Lawler taking over as managing director for advice from David Akers in early May.

“David has led the business with strength, integrity, and vision. With the transformation now well underway, it is the right time to transition to a new leader, who is well-positioned to take the advice business through the next phase of transformation and growth,” said AMP Australia chief Scott Hartley.

“Ahead of Matt’s arrival, David will continue to lead the Advice business to maintain the momentum we have in our advice transformation, with the priorities for the business and the network remaining unchanged.”