The Winnipeg-based firm controlled by the Desmarais family will reduce headcount within plan for streamlining and growth
IGM Financial is to reduce its headcount and costs as part of a drive to shore up its finances and position the firm for growth.
The Winnipeg-headquartered firm which includes IG Wealth Management and Mackenzie Investments says it is streamlining and simplifying its operating model.
It hopes to save around $65 million in annualized run-rate savings on a pre-tax basis ($48m after tax). The firm will record a one-time charge of approximately $103 million pre-tax, or $76 million after-tax during the second quarter.
“We have demonstrated strong expense discipline in recent years, but these changes will further streamline our operations and structurally reduce our costs,” said James O’Sullivan, president and CEO, IGM Financial. “We will use the resulting savings to both reinvest in our future to accelerate growth and reduce expenses. This will help ensure our businesses continue to be competitive and sustainable.”
Job losses
While no details of how many jobs may be lost in the process, the firm says it has completed a review of its organizational structure and will be “optimizing its resources and talent structure to address duplication of roles, enable partnerships across the business.”
“We will continue to invest in the growth and development of our talent to build a strong succession pipeline and continue to offer our people opportunities for fulfilling experiences and careers. This will help ensure we have the right talent, knowledge and skills to enable growth,” said Cynthia Currie, EVP and Chief HR Officer, IGM Financial.
The firm is planning to invest more in its digital transformation including retiring outdating systems and automating and modernizing its information technology infrastructure.
As part of the firm’s streamlining, it will be reducing its IG Wealth Management real estate footprint.
“With the widespread adoption of hybrid work and new technologies, people want more flexibility in how they work and live and how they interact with businesses,” added O’Sullivan.
“We believe these foundational changes will enable us to take full advantage of improving economic conditions as the year progresses and will ensure our continued place among Canada’s leading wealth and asset management companies,” he concluded.
