AMP Limited (ASX: AMP) will reportedly cut as much as 30% of its workforce in some business units.
The share price for the investment giant has been in freefall for a couple of years. It was $5.43 in March 2018 but now sits at a sorry $1.30.
In that time AMP has gone through sexual harassment scandals and been busted for multiple fee-for-no-service and overcharging scams. It has churned through board members as a result.
This week staff were informed that two of its biggest divisions would have its duplicate operations merged.
Chief executive Francesco De Ferrari reportedly said in the memo that some sections could have 30% of its workforce lopped off.
AMP confirmed the restructure to The Motley Fool.
“AMP has made changes to its teams that will centralise some business services,” said a company spokesperson.
“Our focus is on continuing to reshape the organisation to drive efficiency and support the delivery of AMP’s strategy to become a simpler, client-led organisation.”
The changes involve its investment arm AMP Capital and the banking brand AMP Australia.
De Ferrari had already put in place a billion-dollar “transformation” plan last year to rejuvenate the company.
But this year new chair Debra Hazelton flagged it was looking at the possibility of carving up AMP for potential bidders.
The Australian Mutual Provident Society was established in 1849 as a non-profit mutual society. The company demutualised to list in 1998 and has a market capitalisation of $4.5 billion.
Despite the recent share price drop, AMP stocks are still trading at an astonishing 107 price to earnings (P/E) ratio.
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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