One third of 3i workers to go as Burrows slashes costs

The new Chief Executive of 3i, the struggling private equity giant, says jobs will be slashed as the company seeks to recover from its five-year long share price slump.

The group's portfolio of investments is huge, including lingerie firm Agent Provacteur, Interflora and the restaurant chain Giraffe. But since June 2007, 3i shares have lost 86% of their value.

The new man at the top, Simon Burrows, now says he will make over 160 redundancies, or a third of 3i's headcount, while also closing offices in Barcelona, Birmingham, Copenhagen, Hong Kong, Milan and Shanghai.

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The cost savings programme is intended to save £40m by the end of March 2013.

Burrows said of the changes: "The business today is too decentralised and lacks focus and consistency. The operating cost base has lagged changes to the investment business and is currently not aligned with the group's income.

"We will re-focus the group's resources and capital in the regions and sectors where we have demonstrable competitive advantage and see the greatest opportunity."

BS