Introduction
British insurer Legal & General (L&G) has announced a merger of two of its investment units as part of its strategy to streamline operations and reduce costs.Context
The company's decision will lead to some job losses in its asset management division, with Howie Li, the global head of Index and ETFs based in London, set to depart. L&G, which is listed on the FTSE 100, manages one of Europe’s largest asset management operations, overseeing approximately 1.1 trillion pounds in assets.Developments
The upcoming changes will result in the combination of L&G's index funds unit and ETFs division, aiming to create a more globally oriented team under the leadership of David Barron, an internal appointment. Recent reports indicate that around 80 roles will be eliminated, following earlier estimates of 70 job cuts within the same division. CEO Antonio Simoes has also brought in former PGIM executive Eric Adler to oversee the entire asset management division.According to an L&G spokesperson, these changes are expected to enhance the company's capacity to pursue growth opportunities and implement its long-term strategy. Under Simoes's leadership, L&G has focused on expanding into higher-profit markets, particularly in private assets, while also cutting positions to manage expenses.