Perpetual, the wealth management company, has cut jobs and considered outsourcing platform administration services. This is part of a new strategy to revitalize performance disclosed by Chief Executive Chris Ryan who succeeded David Deverall on February 14 as CEO.

Majority of the cut jobs were made across all business units with some managerial layers as well. In the growth areas, 26 roles have been made along with some job changes which are expected to drive annualized cost savings of $9 million before tax from 2011/12.

Ryan updated the market on the new company strategy created to reverse the company's declining performance that produced a 29 per cent fall in first half net profit to $34.98 million, announced last February.

Besides the update, Ryan also announced that underlying net profit in 2010/11 will be coordinated with last year’s $73 million. He explained that the company’s past performance was affected by several “distractions” that are now all part of the past.

As Ryan moves the company toward a more flexible cost base, business units for growth and profit potential are all being reviewed. Meanwhile, its private wealth platform administration business will be on sale because Perpetual does not show indication of competitiveness.

According to the Sydney Morning Herald, come August and December, the future of Perpetual's other business units and more of its cost cutting measures will be included in future market updates as Perpetual considers acquisitions for value-adding assets.

Fund manager and head of equities, John Sevior, who has spent 22 years with Perpetual, remains "very committed to Perpetual", Ryan said. He added that any decision over the international equities business would be made with Mr Sevior's involvement.