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IGM Financial Announces Multi-Year Restructuring to Boost AI Investment and Target $70 M in Annual Savings
IGM Financial Inc., a Canadian wealth‑management firm and subsidiary of Power Corporation of Canada, announced on June 17, 2026 that it will undertake a multi‑year restructuring aimed at reducing operating costs and redirecting the resulting savings into artificial intelligence (AI) initiatives. The company said the initiative is expected to deliver approximately $70 million in annualized savings by the end of 2028.
The restructuring will involve consolidating team structures and streamlining workflows across the firm’s wealth‑management and asset‑management businesses. The company confirmed that the plan will include some layoffs, but did not disclose the number or type of positions affected. A one‑time charge of about $95 million, or $70 million after tax, is expected to be recorded in the second quarter of 2026. The charge covers severance payments and the accelerated accounting recognition of certain incentive programs related to the CEO transition, according to the company’s release.
James O’Sullivan, IGM’s president and CEO, said the restructuring would create greater capacity to invest in the capabilities that will define the future of wealth and asset management. He added that the firm is building an AI‑enabled organization that enhances, rather than replaces, the trusted relationships at the core of its business.
Nini Krishnappa, vice‑president of corporate communications and community, declined to provide details about the layoffs or the overall cost of the restructuring. He said the firm would share more information when it reports its second‑quarter results on July 29. He also emphasized that the initiative is focused on positioning IGM for the future and creating new opportunities for employees through up‑skilling, targeted hiring in priority areas, and expanding capabilities in technology, data and AI.
Under the plan, IGM will invest in AI training, including its existing IGM AI Academy, and add new AI leadership. The company will also hire personnel with expertise in process redesign, data engineering, agent development and deployment, and governance. Advisors will receive expanded wealth‑management tools to assist with meeting preparation, client interactions and workflow efficiency. In the asset‑management arm, Mackenzie Investments will use AI to enhance investment processes and decision‑making.
IGM framed the restructuring 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. The company said the initiative will allow it to manage expense growth prudently while maintaining a 4 percent support and business‑development expense growth target for 2026.
The initiative follows a trend in the wealth‑management sector where firms are investing in AI to improve efficiency and client service. IGM’s plan is similar to moves by other Canadian firms, although the company has not disclosed how the savings will be allocated between its wealth‑management and asset‑management units.
IGM’s announcement comes as the company prepares to report its second‑quarter earnings on July 29. Investors will be looking for confirmation of the projected savings and the progress of AI initiatives, as well as details on the layoffs and cost impact.
As of now, IGM has announced the restructuring plan and the expected $70 million annualized savings target, but the exact scope of layoffs, the full cost of the restructuring, and the timeline for AI deployment remain undisclosed. The company will provide additional information in its upcoming quarterly report.
The restructuring will involve consolidating team structures and streamlining workflows across the firm’s wealth‑management and asset‑management businesses. The company confirmed that the plan will include some layoffs, but did not disclose the number or type of positions affected. A one‑time charge of about $95 million, or $70 million after tax, is expected to be recorded in the second quarter of 2026. The charge covers severance payments and the accelerated accounting recognition of certain incentive programs related to the CEO transition, according to the company’s release.
James O’Sullivan, IGM’s president and CEO, said the restructuring would create greater capacity to invest in the capabilities that will define the future of wealth and asset management. He added that the firm is building an AI‑enabled organization that enhances, rather than replaces, the trusted relationships at the core of its business.
Nini Krishnappa, vice‑president of corporate communications and community, declined to provide details about the layoffs or the overall cost of the restructuring. He said the firm would share more information when it reports its second‑quarter results on July 29. He also emphasized that the initiative is focused on positioning IGM for the future and creating new opportunities for employees through up‑skilling, targeted hiring in priority areas, and expanding capabilities in technology, data and AI.
Under the plan, IGM will invest in AI training, including its existing IGM AI Academy, and add new AI leadership. The company will also hire personnel with expertise in process redesign, data engineering, agent development and deployment, and governance. Advisors will receive expanded wealth‑management tools to assist with meeting preparation, client interactions and workflow efficiency. In the asset‑management arm, Mackenzie Investments will use AI to enhance investment processes and decision‑making.
IGM framed the restructuring 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. The company said the initiative will allow it to manage expense growth prudently while maintaining a 4 percent support and business‑development expense growth target for 2026.
The initiative follows a trend in the wealth‑management sector where firms are investing in AI to improve efficiency and client service. IGM’s plan is similar to moves by other Canadian firms, although the company has not disclosed how the savings will be allocated between its wealth‑management and asset‑management units.
IGM’s announcement comes as the company prepares to report its second‑quarter earnings on July 29. Investors will be looking for confirmation of the projected savings and the progress of AI initiatives, as well as details on the layoffs and cost impact.
As of now, IGM has announced the restructuring plan and the expected $70 million annualized savings target, but the exact scope of layoffs, the full cost of the restructuring, and the timeline for AI deployment remain undisclosed. The company will provide additional information in its upcoming quarterly report.
