Perpetual has announced a three-year restructuring program that will see the company cut 300 full time equivalents (FTEs) over the next two years, while it is also in advanced discussions to sell its lenders' mortgage services business.
Perpetual Lenders Mortgage Services, its mortgage processing business, has 280 FTEs.
The measures will deliver $50 million in pre-tax annual cost savings from full year 2015.
"The program we are announcing today will deliver ongoing annual cost savings of $50 million pre-tax in FY15 [financial year 2015] through a program of asset sales and business reorganisation," Perpetual chief executive Geoff Lloyd said.
"These cost savings are equivalent to 18 per cent of the FY12 normalised cost base," Lloyd said.
Lloyd said the transformation strategy was the result of a careful and in-depth assessment of the issues, challenges and opportunities Perpetual is facing.
"Since becoming the CEO in February this year it has become clear to me that Perpetual's rapid expansion over the last 10 years has added unnecessary complexity," Lloyd said.
"It is now time to shed that complexity and refocus on our core strengths."
Progress has already been made towards this objective over the past 12 months, Lloyd said, with a $7 million or 3 per cent reduction of the FY12 normalised cost base already realised by entering into an agreement with Wellington Management Company and closing the loss-making Dublin-based international share funds manufacturing capability.
Perpetual will also cut the remuneration of its directors by 30 per cent or $0.5 million from 1 July.
As part of these measures, the chairman's remuneration will be reduced by 42 per cent, while non-executive director will see an average reduction of 25 per cent.
"When we appointed Geoff Lloyd as CEO in February, one of the key priorities agreed with him was to achieve a meaningful reduction in the group's cost base," Perpetual chairman Peter Scott said.
"In conducting the review, the directors have taken advice from an independent external consultant to benchmark us against comparable companies and sought feedback from shareholders on what they consider to be an appropriate approach to remuneration."
"The reductions to the board costs show that we are committed to a company-wide review to enable Perpetual to support a return to growth in value for shareholders," he said.
Perpetual had $22.9 billion in funds under management as at 31 May 2012, compared to $23.7 billion as at 31 March 2012.
