Schroders is cutting hundreds of jobs around the world as it grapples with a downturn in the industry, according to people with knowledge of the matter.
The U.K. firm, which manages about £450 billion ($590 billion), has been eliminating positions for several weeks, said the people, who asked not to be identified because the process is private. The cuts will affect about 5% of the company's workforce, or at least 200 jobs, one of the people said.
"We have a number of initiatives across the group to drive greater efficiencies and generate growth," according to an emailed statement from the company. "This includes realigning our resources which allows us to continue investing where we see strategic growth opportunities, in areas such as private assets and wealth management."
Active fund managers like Schroders, which try to outperform their benchmarks by buying and selling securities, have come under enormous pressure in recent years from so-called passive funds that track an index and typically charge lower fees. That's led some asset managers to cut costs.
Deutsche Bank's DWS Group, which runs both passive and active strategies, cut 5% of jobs in the U.K. earlier this year.