AMP set to cut jobs, freeze pay
An email leaked to insuranceNEWS.com.au shows financial services giant AMP is freezing staff pay and will slash jobs in order to reduce costs.
The email, which was circulated to AMP staff by Financial Services MD Craig Meller, says the biggest cost in running the business “by far” is employee salaries, so it is “unavoidable” that it has to look for savings in that area.
“For this reason, salaries will be held flat in 2009 (compared to 2008) for all employees other than those who are covered by the AMP Enterprise Agreement,” Mr Meller told staff.
“It’s also unavoidable that in some parts of the business, we’re going to have to reduce employee numbers in order to bring costs down. I know that confirming this without providing details is unsettling, but I want to be upfront with you.”
AMP employs 4100 people in Australia and NZ in the areas of insurance, banking, superannuation, financial planning and investments.
An AMP spokesman confirmed to insuranceNEWS.com.au 30 permanent roles have already been made redundant at AMP Capital Investor last week and 30 contractors will be finishing up early.
She could not confirm whether further jobs would be cut or whether salaries would be frozen.
According to the email, employees at job level five and above will not get a pay rise next year while those at levels one to four will have their pay reviewed in the normal way. But the company emphasised there are no guarantees.
The email, which was circulated to AMP staff by Financial Services MD Craig Meller, says the biggest cost in running the business “by far” is employee salaries, so it is “unavoidable” that it has to look for savings in that area.
“For this reason, salaries will be held flat in 2009 (compared to 2008) for all employees other than those who are covered by the AMP Enterprise Agreement,” Mr Meller told staff.
“It’s also unavoidable that in some parts of the business, we’re going to have to reduce employee numbers in order to bring costs down. I know that confirming this without providing details is unsettling, but I want to be upfront with you.”
AMP employs 4100 people in Australia and NZ in the areas of insurance, banking, superannuation, financial planning and investments.
An AMP spokesman confirmed to insuranceNEWS.com.au 30 permanent roles have already been made redundant at AMP Capital Investor last week and 30 contractors will be finishing up early.
She could not confirm whether further jobs would be cut or whether salaries would be frozen.
According to the email, employees at job level five and above will not get a pay rise next year while those at levels one to four will have their pay reviewed in the normal way. But the company emphasised there are no guarantees.