MSCI says it plans to cut around 70 to 80 jobs in the first round of a restructuring as it absorbs its £1.55 billion ($2.4 billion) acquisition of risk management and ESG research firm RiskMetrics.
The move, announced in a regulatory filing, aims to eliminate overlapping jobs, office space and vendor contracts. Also part of the plan will be the discontinuation of the planned integration of an unnamed product into RiskMetrics' “standard product offering suite.” It gave no geographical location for the job cuts.
The cuts are a step toward the cost synergies MSCI referred to at the time of the acquisition in March. At the time, MSCI CEO Henry Fernandez identified $50 million of cost synergies resulting from the deal.
MSCI said Thursday that the first round of cuts “is expected to impact approximately 70 to 80 employees” in areas such as research and development and general and administrative.
Some staff were notified starting June 1 and the company expects to notify all other staff affected “by this first round” by the end of August. MSCI will incur severance related expenses of up to $6 million.
There will be a second round of the restructuring plan expected to be complete by the end of the first quarter of 2011.
Daniel Brooksbank is editor of Responsible Investor.