Octopus Investments to cut 20% of staff as AI reshapes asset management

""We've made the difficult but necessary decision to ensure we are a simpler business that can respond to the pace of change," a spokesperson said, adding that affected employees would be supported in finding new roles both within the wider group and externally."

"The cuts form part of a broader strategy to invest more heavily in technology, particularly AI, which is increasingly being used to automate routine tasks, improve efficiency and reduce operational costs across financial services."

"The move underscores how quickly AI is reshaping the financial sector, particularly in areas such as administration, compliance and reporting, where repetitive processes are well suited to automation."

"Asset managers have been among the fastest adopters of the technology, using AI tools to handle data processing, client onboarding and portfolio analytics."

Octopus Investments is reducing its workforce by approximately 20%, affecting around 130 roles, primarily in back-office functions. This restructuring aims to modernize operations and enhance efficiency through increased investment in artificial intelligence. The financial sector is rapidly adopting AI to automate tasks, improve efficiency, and reduce costs. The decision is part of a broader trend among asset managers to adapt to technological advancements, ensuring competitiveness in a changing environment. Other financial institutions are also reassessing workforce structures due to AI capabilities.

Read at Business Matters