3i Dismisses 10% Staff After H1 Loss

The U.K.’s largest listed private equity firm 3i Group is sacking a further 10 percent of its employees as a drop in valuations led the group to a loss in the first half.

The U.K.’s largest listed private equity firm 3i Group is sacking a further 10 percent of its employees as a drop in valuations led the group to a loss in the first half, Financial Times reports. The job cuts come as the firm moves towards cost-cutting after it more than doubled the dividend to pacify investors angered over a poor share price performance and low dividend yield of 1.9 percent.

The job cuts will mean 45 staff members are being fired, more than half of which will be in London. By the end of 2011, 3i will have a headcount of nearly 430, compared to 750 in mid-2007. The dismissal mainly signifies the upcoming end of the investment period of 3i’s €5 billion buyout fund, which will be merged with the €1.2 billion growth fund.

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Financial Times 3i Group London Financial News U.K.