(Reuters) - Insurer Manulife Financial Corp said on Thursday it will outsource its property operations in Canada to focus on its entrepreneurial investment management unit.
The company said it will outsource leasing services to the commercial real estate brokerage firm JLL Inc under a short-term contract, following which services will be provided by a range of brokerage firms.
"As part of this repositioning, our teams working in Canada property operations will move to JLL in March 2023," Manulife said. The company did not say how many people would be affected.
Manulife Investment Management's real estate arm uses a pool of capital to invest in real estate in 29 cities across the United States, Asia and Canada.
Spooked by rising interest rates, companies across the globe have rushed to rein in costs and shed workforce. The Bank of Canada has hiked its benchmark rate by 350 basis points since March to 3.75%, a 14-year high. Another increase is expected in December.
Earlier this month, Manulife reported a drop in third-quarter profit, as escalating worries of an economic downturn impaired earnings at its wealth and asset management unit.
(Reporting by Niket Nishant and Bhanvi Satija in Bengaluru and Divya Rajagopal in Toronto; editing by Jason Neely)