IGM Financial cuts costs to invest in AI

IGM Financial Inc. is embarking on a multi-year restructuring in order to boost its investment in AI, a move that it expects to deliver $70 million in annualized savings by the end of 2028.

The restructuring, which is aimed at improving efficiency and reducing costs, will involve some layoffs as the firm consolidates team structures and streamlines workflows to increase efficiency. It will allow IGM to invest in AI and advanced technology across its wealth management and asset management businesses, the firm said in a release.

IGM expects to take a one-time charge of $95 million in its second quarter ($70 million after tax) related to severance payments and “accelerated accounting recognition of certain incentive programs related to CEO transition.”

The firm didn’t specify how many or what type of positions would be cut. In an emailed response to questions, Nini Krishnappa, IGM’s vice-president of corporate communications and community, declined to share those details, confirm the overall cost of the restructuring, or how much of the charge is related to incentive programs. He said more detail may be released when IGM reports its second-quarter results on July 29.

“This initiative is focused on positioning IGM for the future. A key part of that is creating new opportunities for our people — through upskilling, targeted hiring in priority areas and expanding capabilities in technology, data and AI,” Krishnappa said.

The firm’s AI investments are aimed at allowing employees and advisors to “focus on higher-value work and continue delivering strong outcomes for clients. Overall, this is about evolving IGM as an agile, AI-enabled business while continuing to prioritize our human-first, relationship-driven approach.”

In a release, the firm framed the move as a continuation of investments in its technology platforms and changes to its operating model that have already been implemented over the past several years.

James O’Sullivan, IGM Financial’s president and CEO, said the restructuring will create “greater capacity to invest in the capabilities that will define the future of wealth and asset management.”

“We are building an AI-enabled organization that enhances, not replaces, the trusted relationships at the core of our business,” he said. “While much is still evolving, we are encouraged by the opportunities AI is providing to elevate the advice experience, empower our advisors and employees, and deliver even stronger outcomes for clients, while staying grounded in the personal connections that define our model.”

The firm intends to invest in AI training, including its existing IGM AI Academy, and add new AI leadership. It will also hire personnel with expertise in process redesign, data engineering, agent development and deployment, and governance.

Advisors will see expanded wealth management tools and capabilities to assist with meeting preparation, client interactions and workflow efficiency, while AI investments at IGM’s asset management business, Mackenzie Investments, will enhance investment processes and decision-making.