IGM Financial (IGM.TO) after the close Wednesday announced a multi-year initiative to simplify its operations, aimed at reducing "complexity and costs" and generating additional savings.
IGM said it is taking actions to improve efficiency, lower ongoing costs and create greater enterprise agility. Some of the efforts include consolidating team structures and streamlining workflows to drive efficiency and increase alignment with strategy; upskilling its existing workforce and enhancing capabilities through targeted hiring in areas such as AI leadership, process redesign, data engineering, agent development and deployment, and governance; and advancing key technology, data and AI capabilities across the enterprise.
It is anticipated that this initiative will generate approximately $70 million in annualized savings by the end of 2028, IGM said. This will be reinvested in AI capabilities, with a focus on people, processes and technologies to further strengthen the company while allowing it to manage expense growth prudently, it added.
IGM is maintaining its operations, support and business development expense growth target of 4%t for 2026. The company expects to record a one-time charge of approximately $95 million or $70 million after-tax in Q2 related to these activities, including severance and the accelerated accounting recognition of certain incentive programs related to CEO transition.
The company did not say how many positions will be cut in the restructuring.
"We are building an AI-enabled organization that enhances, not replaces, the trusted relationships at the core of our business," said chief executive James O'Sullivan.
"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."
Shares of the company closed up $1.62 to $83.41 on Toronto Stock Exchange on Wednesday.