Asset manager Robeco is to make about 70 operational workers redundant following an outsourcing deal with JP Morgan.
The Dutch firm has appointed JP Morgan as service provider for certain operational and administration activities, including custody, fund accounting and securities lending.
The transfer, which starts this month, is expected to take up to two years to complete.
The firm said around 70 employees based in Robeco’s Rotterdam business “whose positions are in scope for the outsourcing, will become redundant once the process has been completed”.
Those employees will be entitled to Robeco’s social plan, which includes outplacement counselling.
Robeco said the outsourcing would aid its global growth ambitions.
The asset manager is owned by Robeco Group, which recently said it would rebrand with immediate effect as Orix following a 2013 deal with its Japanese shareholders.
Gilbert Van Hassel, chief executive of Robeco, said: “Outsourcing is the prevailing trend in the industry. As a consequence of the global playing field and increasing complexity, asset managers need a specialised operations provider with a global presence.”
Referring to the job losses, he added: “Given the impact of this decision on our people, this is not a decision that we have taken lightly and we will implement the outsourcing with the greatest care for the people involved. However, we believe that outsourcing is a necessary step that will help us continue to deliver excellent service to our clients worldwide.”
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