For the first time in its 26-year history AIM Management Group will formally eliminate jobs. The Houston-based fund firm will reduce its workforce by about 122 employees, or some five percent, as part of its parent Amvescap's $155 million cost-cutting effort. The Anglo-U.S. firm will cut 500 jobs throughout its worldwide operations by the end of next year.

A spokesman at the U.S. unit said the final details, including the functional areas to be affected, will be ironed out by mid-November. Amvescap oversees AIM's U.S. and Canadian units, as well as Invesco Funds and Invesco Retirement in the U.S.

In June, Invesco Funds announced plans to cut headcount by 115, and about a year ago, the AIM Funds Canada unit planned to eliminate roughly the same number of positions. In the past year, Amvescap has reduced its workforce by about 1,000 employees -- the majority through attrition.

"In response to the difficult market environment of the last two years, we have steadily adjusted the size of our operations," said Charles W. Brady, Amvescap's executive chairman, in a prepared release. "Continuing significant market declines during the third quarter demand that additional savings be achieved, and accordingly, we have initiated a cost reduction program."

"All the business units are taking a look at ways to cut costs," said a company spokesman. He added that some of the 500 to be cut may occur through attrition, and that some units may avoid layoffs altogether by implementing other cost efficiencies.

Amvescap's profits before tax, goodwill amortization and exceptionals fell 31 percent year-on-year in the third quarter to $413.2 million. Revenues for the nine months ended September 30, 2002 declined to $1.655 billion from $1.824 billion in the third quarter of last year. 

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