Perpetual slashes profit guidance, and jobs

Fund manager Perpetual has slashed its profit forecast and has confirmed it may need to cut about 300 jobs over the next years as part of a corporate restructure.

The company will attempt to change itself over the next three years in order to cut down on costs and simplify its structure.

According to a statement to the ASX, the company said its full year net profit will drop to between $22 million and $29 million, down from the $62 million recorded in the last financial year.

Executives will also suffer pay cuts, with chairman Peter Scott to see his salary dropped by 42%. Remuneration for non-executive directors is to fall by an average of 25%, according to the company.

“The reductions to the board costs show that we are committed to a company-wide review to enable Perpetual to support a return to growth in value for shareholders,” Scott said in a statement.

“We needed to take an honest look at our business and it was clear our operating model was not sustainable and our operational structure not optimal,” said chief executive Geoff Lloyd.

This article first appeared on SmartCompany.