Staff cut as BGI bids to slash costs

Up to 10 employees at BGI's London office have been made redundant, with the project management team worst hit. Paul McGee, an index strategist, is understood to be one of those to leave.

Earlier this year, BGI cut a number of its client services team in London, where its European operations are based.

A BGI spokesman said: "Our structure is evolving to improve our efficiency. Unfortunately, as a consequence, a small number of roles have disappeared."

He would not comment on rumours that BGI will make further staff cuts by the end of the year. Last week, Miles O'Connor, one of only four managing directors in Europe, resigned from BGI to join Schroders, a rival fund manager.

John Varley, the next chief executive at Barclays, has told analysts he wants to boost sales of BGI's products through other subsidiaries, particularly its private client division.