AMP flags mass job cuts to reverse sinking share price

Embattled financial services giant will slash costs and headcount by merging some operations across AMP Capital and AMP Australia.
The post AMP flags mass job cuts to reverse sinking share price appeared first on Motley Fool Australia. –

Man in business suit carries box of personal effects

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.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

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.

The post AMP flags mass job cuts to reverse sinking share price appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!