“There is a significant amount of redundancy especially at the top level. There will be a lot of churn at the senior level,” said sources. Pioneer ITI or Templeton could not be reached for comment.
Earlier, it was expected that the merger process would not cause much pain to the employees as areas of overlap between the two fund houses are minimal.
Pioneer ITI is entirely into fund management of equities while Templeton is known better for its bond funds.
Mr Rajiv Vij, regional head, India and Middle East had reportedly said that the two fund houses will be maintained as separate entities. He has also said the overlap of employees would be less than five per cent.
Templeton has almost completed the buy out of Pioneer ITI. Only a few regulatory requirements such as Sebi approval is needed. The size of the deal has been pegged at about Rs 220 crore.