St James’s Place, the largest wealth management firm in the UK, has issued a notice to its employees regarding likely job losses exceeding 500 as it nears a return to the FTSE 100 index this month.

The layoffs are anticipated to predominantly affect the Cirencester headquarters, which employs a substantial number of its 3,200 workforce. Employees at the company’s 20 regional offices may also be impacted.

Those who sell SJP products directly to retail clients—as part of the 4,800 self-employed financial advisers—will not be part of these reductions.

The firm confirmed on Monday that it has initiated a consultation process regarding potential redundancies, with final decisions expected in the coming year. Sources indicate that job losses could be upwards of 500.

The news of possible job cuts was first suggested in July when new CEO Mark FitzPatrick outlined a strategy to reduce costs by £100 million annually by 2027.

These cuts coincide with a revaluation of the company, which is likely to return to the FTSE 100 as a result of a notable recovery in share value. FTSE Russell is expected to announce its final decision after market close on Tuesday.

SJP manages the investment portfolios of around 1 million financially secure families across Britain. Previously criticized for its high fees, the firm has adapted to the new consumer standards and has committed to reducing costs, resulting in shares doubling over the past six months.

An official spokesperson from SJP remarked: “During our half-year results presentation in July, we pledged to achieve £100 million in annual savings by 2027 from our addressable cost base. Our approach to cost reduction is centered around streamlining processes, although a transformation of this magnitude will inevitably impact our staff.”

“We have now commenced discussions with our colleagues to outline how this may affect their roles, with outcomes yet to be determined until next year. Meanwhile, we remain dedicated to supporting all staff potentially affected and will keep them informed of any significant developments.”