Introduction
The Italian arm of France's Amundi, the largest asset manager in Europe, has announced plans to reduce its workforce by 50 employees by year-end, according to a document shared with unions.Context
This reduction represents 13.8% of Amundi's total staff in Italy, which numbers 363 people. The layoffs are at the lower end of the range previously indicated by Amundi SGR to unions last month, aimed at achieving necessary savings and maintaining profit margins amid increasing competition in the sector.Developments
On May 15, Reuters first reported on the proposed cuts. An Amundi representative declined to provide further comments but reiterated the company's target for annual savings between 30-40 million euros starting in 2026. The focus will shift towards Exchange Traded Funds, technology, Asian markets, and third-party distribution agreements.Italy represents the largest foreign market for both Amundi and its parent organization, Credit Agricole. A meeting scheduled for June 12 will discuss the reassignment of some Italian employees within the banking group, involving representatives from Credit Agricole.
In 2017, Amundi acquired the fund business of UniCredit for 3.55 billion euros and established a 10-year distribution agreement, the future of which is now contingent on various developments involving Italian banks. Notably, UniCredit has made a bid for Banco BPM, which led Credit Agricole to increase its stake to just under 20% in order to solidify its role as BPM's leading shareholder and preserve existing partnerships in insurance and consumer finance.
A union source indicated that the layoffs are unrelated to the ongoing discussions surrounding the UniCredit contract.