(Alliance News) - Woodford Investment Management has informed its staff that a "handful" of roles are currently under review, Reuters reported on Wednesday.
"We have reluctantly entered into redundancy consultations with a number of staff to advise them that their roles are at risk," a spokesperson for Woodford Investment Management told the news agency in an email statement.
According to Reuters, Woodford informed an audience of financial advisers in June that any job cuts would not include investment staff.
Woodford Investment Management had 45 staff as at the end of March 2018, when it last published accounts.
https://uk.reuters.com/article/uk-woodford-inv-suspension-jobs/woodford-plans-staff-cuts-following-fund-suspension-idUKKCN1TY1Z6
In a video statement to investors on Monday, fund manager Neil Woodford said he had structured his business to allow for periods of fewer staff and resources.
"When we built the business, we built flexibility into the model. We didn't build lots of fixed cost into the business. But we variablise as much cost as we could such that, if there was this sort of event, we could quickly adjust to it. And that's exactly what we've done," he said.
At the beginning of June, Woodford Investment Management took the decision to suspend withdrawals from its flagship equity income fund due to "an increased level of redemptions" requiring it to "reposition" its portfolio invested in unquoted and less liquid stocks into more liquid investments.
On Tuesday last week, Woodford's LF Equity Income Fund said withdrawals would remain suspended indefinitely, and at least for another month.
Woodford Investment Management also manages LF Woodford Income Focus Fund and London-listed Woodford Patient Capital Trust PLC.
Shares in Woodford Patient Capital Trust closed 3.4% higher at 58.00 pence on Thursday.
