* Could cut 10 pct of combined workforce - source
* Man expecting annual cost-savings of $50 mln
(Recasts, adds sourcing, detail)
By Laurence Fletcher
LONDON, Oct 28 (Reuters) - Man Group (EMG.L), the world’s biggest listed hedge fund firm, is planning redundancies that could number 180-200 as it cuts costs after a fall in assets and its takeover of GLG, a source familiar with the situation said. The cuts would amount to around 10 percent of the two companies’ combined workforce, although the final number is yet to be decided, the source told Reuters. Man bought smaller rival GLG Partners for $1.6 billion this year after seeing client assets roughly halve during the credit crisis from the nearly $80 billion it ran in summer 2008.
The cuts follow news last month that D.E. Shaw & Co, the world’s third-biggest hedge fund firm, had cut 150 staff while Citadel Securities recently cut around 12 positions as the industry struggles to win back the investors it lost during the crisis. [ID:nN29277572] “We have previously confirmed that GLG integration synergies are expected to annualise at about $50 million and be delivered over the next 12 months. Some but not all of these savings will be headcount related,” Man said in a statement.
A spokesman declined to give further details or to comment on the number of job cuts.
At 1337 GMT Man's shares were up 2.5 percent at 260.1 pence, outperforming a 1 percent rise in the FTSE 100 .FTSE index. Departures so far have included Man's head of compliance, head of institutional sales and head of marketing and client services, while the group has said it will cut jobs linked to GLG's New York listing. One source close to Man said cuts could also come in the multi-manager business, which former FRM executive Luke Ellis was recently hired to run, while there was overlap in client services and marketing and sales. [ID:nLDE67N1F3]
(Editing by Sinead Cruise and Michael Shields)
Additional reporting by Matthew Goldstein in New York