Manulife lays off 2.5% of staff in wealth management unit

By Dat Nguyen October 31, 2024 | 12:30 am PT

A Manulife Financial Corporation logo is seen on a smartphone screen. Photo by Reuters

Canada-based insurance giant Manulife has laid off hundreds of employees – or 2.5% of total staff – in its wealth management unit Manulife Financial in a bid to improve its operation.

The move was made "in an effort to leverage our global operating model and focus on high-growth priorities," a spokesperson said, as reported by Bloomberg.

The Toronto Star reported earlier that the division was eliminating 225 jobs.

As of June 30, Manulife’s wealth and asset management unit managed over US$791 billion in assets across regions including Canada, the US, Asia, Oceania, and Europe.

According to Deloitte’s 2025 investment management outlook, asset and wealth managers face narrowing profit margins.

It added that investors interest in low-cost funds is on the rise, keeping low-expense ratios prevalent, while active management has found its niche within exchange-traded funds.

Deloitte identified digital transformation, technology advances, and cybersecurity as key risks for investment managers.