Report: Asset Management to See Job Cuts through 2021

A report in Institutional Investor says the asset management industry can expect to see layoffs and shrunken bonuses over the next several months. Citing a report from consultancy Johnson Associates, the report said while the broader market recovery has saved the industry from drastic cuts, the very success and efficiencies of remote working and other pandemic related adjustments will lead to job reductions into 2021. According to Johnson Associates’ projections for asset management firms, revenues will fall due to product shifts; investors will shift to lower risk, lower fee products impacting revenues; firms will experience increased technology and infrastructure costs, and layoffs will begin and continue through year-end and into 2021.