Australian wealth management company AMP has plans to cut one-fifth of its total workforce across two divisions as it aims to cut costs.

The company is also reportedly looking to divest some parts of its business.

As per its 2019 annual report, the firm had about 6,500 employees.

The firm said that the redundancies will affect those working in its investment unit AMP Capital and banking unit AMP Australia.

The move will remove duplicate roles across human resources and legal services.

A spokesman for AMP was quoted by Sydney Morning Herald (SMH) as saying “Our focus is on continuing to reshape the organisation to drive efficiency and support the delivery of AMP’s strategy to become a simpler, client-led organisation.”

Moreover, AMP CEO Francesco Ferrari said that its financial planning network could reduce by nearly 30%.

According to media reports, AMP money manager Boe Pahari will continue to be in the lead role at AMP Capital.

Finance Sector Union (FSU) national assistant secretary Nathan Rees said that the union was not consulted by AMP regarding its overhaul strategy.

Rees was quoted by the SMH: “AMP has been a mainstay of corporate Australia for many-many years. To now be throwing employees onto a scrap heap during Covid-19 and a declining economy is extremely poor form and shows a lack of regard for longstanding employees that have done nothing wrong apart from performing they’re very best at their job every day.”