Simon Borrows, the new Chief Executive of struggling private equity giant 3i, says jobs will be slashed as the company seeks to recover from its five-year long share price slump.
The group's portfolio of investments is huge, including lingerie firm Agent Provacteur, Interflora and the restaurant chain Giraffe, but since June 2007, 3i shares have lost 86% of their value.
The new man at the top, Simon Borrows, says he will make over 160 redundancies, or a third of 3i's headcount, while also closing offices in Barcelona, Birmingham, Copenhagen, Hong Kong, Milan and Shanghai.
The cost savings programme is intended to save £40m by the end of March 2013.
Borrows said of the changes: "The business today is too decentralised and lacks focus and consistency. The operating cost base has lagged changes to the investment business and is currently not aligned with the group's income.
"We will re-focus the group's resources and capital in the regions and sectors where we have demonstrable competitive advantage and see the greatest opportunity."
3i Group has made an irrevocable offer to Barclays Bank to acquire Barclays Infrastructure Funds Management (BIFM), its European infrastructure fund management business, in what would be a 'significant milestone' for the group. [24 May '13]
Shares in chemicals company Synthomer dropped on Thursday after the company said demand in Europe was weaker than anticipated during March and April, driving the overall group performance lower. [16 May '13]
FTSE 250 investment group 3i Group saw a surge in assets under management (AuM) in the year to March 31st and said that it has identified further cost savings for the future after outperforming its targets last year. [16 May '13]
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